Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-17948 | |
Entity Registrant Name | ELECTRONIC ARTS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-2838567 | |
Entity Address, Address Line One | 209 Redwood Shores Parkway | |
Entity Address, City or Town | Redwood City | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94065 | |
City Area Code | 650 | |
Local Phone Number | 628-1500 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | EA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 289,674,301 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000712515 | |
Current Fiscal Year End Date | --03-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 | |
Current assets: | |||
Cash and cash equivalents | $ 3,603 | $ 4,708 | |
Short-term investments | 1,999 | 737 | [1] |
Receivables, net | 798 | 623 | [1] |
Other current assets | 229 | 313 | [1] |
Total current assets | 6,629 | 6,381 | [1] |
Property and equipment, net | 439 | 448 | [1] |
Goodwill | 1,892 | 1,892 | [1] |
Acquisition-related intangibles, net | 62 | 87 | [1] |
Deferred income taxes, net | 1,828 | 35 | [1] |
Other assets | 311 | 114 | [1] |
TOTAL ASSETS | 11,161 | 8,957 | [1] |
Current liabilities: | |||
Accounts payable | 61 | 113 | [1] |
Accrued and other current liabilities | 1,204 | 1,052 | [1] |
Deferred net revenue (online-enabled games) | 1,073 | 1,100 | [1] |
Total current liabilities | 2,338 | 2,265 | [1] |
Senior notes, net | 995 | 994 | [1] |
Income tax obligations | 352 | 233 | [1] |
Deferred income taxes, net | 2 | 2 | [1] |
Other liabilities | 237 | 132 | [1] |
TOTAL LIABILITIES | 3,924 | 3,626 | [1] |
Commitments and contingencies (See Note 12) | [1] | ||
STOCKHOLDERS' EQUITY: | |||
Common stock, $0.01 par value. 1,000 shares authorized; 291 and 298 shares issued and outstanding, respectively | 3 | 3 | [1] |
Additional paid-in capital | 0 | 0 | [1] |
Retained earnings | 7,267 | 5,358 | [1] |
Accumulated other comprehensive loss | (33) | (30) | [1] |
Total stockholders' equity | 7,237 | 5,331 | [1] |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 11,161 | $ 8,957 | [1] |
[1] | Derived from audited Consolidated Financial Statements. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 291 | 298 |
Common stock, shares outstanding | 291 | 298 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net revenue | $ 1,593 | $ 1,289 | $ 4,150 | $ 3,712 |
Cost of revenue | 508 | 413 | 1,100 | 1,046 |
Gross profit | 1,085 | 876 | 3,050 | 2,666 |
Operating expenses: | ||||
Research and development | 389 | 334 | 1,157 | 1,035 |
Marketing and sales | 202 | 187 | 464 | 473 |
General and administrative | 126 | 106 | 364 | 337 |
Acquisition-related contingent consideration | 2 | 1 | 5 | 3 |
Amortization of intangibles | 5 | 6 | 16 | 18 |
Total operating expenses | 724 | 634 | 2,006 | 1,866 |
Operating income (loss) | 361 | 242 | 1,044 | 800 |
Interest and other income (expense), net | 13 | 23 | 50 | 60 |
Income before provision for income taxes | 374 | 265 | 1,094 | 860 |
Provision for income taxes | 28 | 3 | (1,527) | 50 |
Net income (loss) | $ 346 | $ 262 | $ 2,621 | $ 810 |
Earnings (loss) per share: | ||||
Earnings Per Share, Basic | $ 1.18 | $ 0.87 | $ 8.91 | $ 2.66 |
Earnings Per Share, Diluted | $ 1.18 | $ 0.86 | $ 8.85 | $ 2.64 |
Number of shares used in computation: | ||||
Basic | 292 | 302 | 294 | 304 |
Diluted | 294 | 304 | 296 | 307 |
Product [Member] | ||||
Net revenue | $ 701 | $ 552 | $ 1,435 | $ 1,377 |
Cost of revenue | 216 | 175 | 444 | 465 |
Service [Member] | ||||
Net revenue | 892 | 737 | 2,715 | 2,335 |
Cost of revenue | $ 292 | $ 238 | $ 656 | $ 581 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 346 | $ 262 | $ 2,621 | $ 810 |
Other comprehensive income (loss), net of tax: | ||||
Net gains (losses) on available-for-sale securities | (1) | 2 | 2 | 3 |
Net gains (losses) on derivative instruments | (29) | 11 | (4) | 107 |
Foreign currency translation adjustments | 7 | (11) | (1) | (23) |
Total other comprehensive income (loss), net of tax | (23) | 2 | (3) | 87 |
Total comprehensive income (loss) | $ 323 | $ 264 | $ 2,618 | $ 897 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 2,621 | $ 810 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion | 111 | 108 |
Stock-based compensation | 256 | 211 |
Change in assets and liabilities: | ||
Receivables, net | (176) | (271) |
Other assets | 76 | 41 |
Accounts payable | (33) | 35 |
Accrued and other liabilities | 264 | 123 |
Deferred income taxes, net | (1,793) | (89) |
Deferred net revenue (online-enabled games) | (27) | (20) |
Net cash provided by operating activities | 1,299 | 948 |
INVESTING ACTIVITIES | ||
Capital expenditures | (100) | (84) |
Proceeds from maturities and sales of short-term investments | 1,375 | 955 |
Purchase of short-term investments | (2,621) | (1,144) |
Acquisition, net of cash acquired | 0 | (58) |
Net cash used in investing activities | (1,346) | (331) |
FINANCING ACTIVITIES | ||
Proceeds from issuance of common stock | 34 | 36 |
Cash paid to taxing authorities for shares withheld from employees | (86) | (116) |
Repurchase and retirement of common stock | (916) | (891) |
Acquisition-related contingent consideration payment | 105 | |
Payment for Contingent Consideration Liability, Financing Activities | 90 | 0 |
Net cash used in financing activities | (1,058) | (971) |
Effect of foreign exchange on cash and cash equivalents | 0 | (17) |
Increase (decrease) in cash and cash equivalents | (1,105) | (371) |
Beginning cash and cash equivalents | 4,708 | 4,258 |
Ending cash and cash equivalents | 3,603 | |
Supplemental cash flow information: | ||
Cash paid during the period for income taxes, net | 116 | 85 |
Cash paid during the period for interest | 21 | 21 |
Non-cash Investing activities | ||
Change in accrued capital expenditures | $ (20) | $ (11) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (loss) | |
Beginning balance (in shares) at Mar. 31, 2018 | 306,370 | |||||
Beginning balance at Mar. 31, 2018 | $ 4,595 | $ 3 | $ 657 | $ 4,062 | $ (127) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | Accounting Standards Update 2014-09 [Member] | 590 | |||||
Cumulative Effect on Retained Earnings, Net of Tax | ASU 2018-02 [Member] | (1) | |||||
Other comprehensive income (loss) before reclassifications | Accounting Standards Update 2014-09 [Member] | 22 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | ASU 2018-02 [Member] | 1 | |||||
Cumulative Effect on Retained Earnings, Tax | Accounting Standards Update 2014-09 [Member] | 612 | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 371 | 293 | 78 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 70 | 70 | ||||
Stock Issued During Period, Shares, New Issues | 1,280 | |||||
Stock Issued During Period, Value, New Issues | (88) | (88) | ||||
Stock Repurchased and Retired During Period, Shares | (2,264) | |||||
Stock Repurchased and Retired During Period, Value | (300) | (300) | 0 | |||
Ending balance (in shares) at Jun. 30, 2018 | 305,386 | |||||
Ending balance at Jun. 30, 2018 | 5,260 | $ 3 | 339 | 4,944 | (26) | |
Beginning balance (in shares) at Mar. 31, 2018 | 306,370 | |||||
Beginning balance at Mar. 31, 2018 | 4,595 | $ 3 | 657 | 4,062 | (127) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) before reclassifications | 81 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | 6 | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 897 | |||||
Stock Repurchased and Retired During Period, Shares | (600) | |||||
Stock Repurchased and Retired During Period, Value | $ (76) | |||||
Ending balance (in shares) at Dec. 31, 2018 | 300,894 | |||||
Ending balance at Dec. 31, 2018 | 5,344 | $ 3 | 0 | 5,358 | (17) | |
Beginning balance (in shares) at Jun. 30, 2018 | 305,386 | |||||
Beginning balance at Jun. 30, 2018 | 5,260 | $ 3 | 339 | 4,944 | (26) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 262 | 255 | 7 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 66 | 66 | ||||
Stock Issued During Period, Shares, New Issues | 618 | |||||
Stock Issued During Period, Value, New Issues | 28 | 28 | ||||
Stock Repurchased and Retired During Period, Shares | (2,334) | |||||
Stock Repurchased and Retired During Period, Value | (299) | (299) | 0 | |||
Ending balance (in shares) at Sep. 30, 2018 | 303,670 | |||||
Ending balance at Sep. 30, 2018 | 5,317 | $ 3 | 134 | 5,199 | (19) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) before reclassifications | 12 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | (10) | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 264 | 262 | 2 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 75 | 75 | ||||
Stock Issued During Period, Shares, New Issues | 382 | |||||
Stock Issued During Period, Value, New Issues | (20) | (20) | ||||
Stock Repurchased and Retired During Period, Shares | (3,158) | |||||
Stock Repurchased and Retired During Period, Value | (292) | (189) | (103) | |||
Ending balance (in shares) at Dec. 31, 2018 | 300,894 | |||||
Ending balance at Dec. 31, 2018 | $ 5,344 | $ 3 | 0 | 5,358 | (17) | |
Beginning balance (in shares) at Mar. 31, 2019 | 298,000 | 298,107 | ||||
Beginning balance at Mar. 31, 2019 | $ 5,331 | [1] | $ 3 | 0 | 5,358 | (30) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 1,434 | 1,421 | 13 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 73 | 73 | ||||
Stock Issued During Period, Shares, New Issues | 985 | |||||
Stock Issued During Period, Value, New Issues | (48) | (48) | ||||
Stock Repurchased and Retired During Period, Shares | (3,205) | |||||
Stock Repurchased and Retired During Period, Value | (305) | (25) | (280) | |||
Ending balance (in shares) at Jun. 30, 2019 | 295,887 | |||||
Ending balance at Jun. 30, 2019 | $ 6,485 | $ 3 | 0 | 6,499 | (17) | |
Beginning balance (in shares) at Mar. 31, 2019 | 298,000 | 298,107 | ||||
Beginning balance at Mar. 31, 2019 | $ 5,331 | [1] | $ 3 | 0 | 5,358 | (30) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) before reclassifications | 49 | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | (52) | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 2,618 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 291,000 | 290,609 | ||||
Ending balance at Dec. 31, 2019 | $ 7,237 | $ 3 | 0 | 7,267 | (33) | |
Beginning balance (in shares) at Jun. 30, 2019 | 295,887 | |||||
Beginning balance at Jun. 30, 2019 | 6,485 | $ 3 | 0 | 6,499 | (17) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 861 | 854 | 7 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 92 | 92 | ||||
Stock Issued During Period, Shares, New Issues | 584 | |||||
Stock Issued During Period, Value, New Issues | 26 | 26 | ||||
Stock Repurchased and Retired During Period, Shares | (3,253) | |||||
Stock Repurchased and Retired During Period, Value | (306) | (118) | (188) | |||
Ending balance (in shares) at Sep. 30, 2019 | 293,218 | |||||
Ending balance at Sep. 30, 2019 | 7,158 | $ 3 | 0 | 7,165 | (10) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) before reclassifications | (6) | |||||
Amounts reclassified from accumulated other comprehensive income (loss) | (17) | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 323 | 346 | (23) | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 91 | 91 | ||||
Stock Issued During Period, Shares, New Issues | 492 | |||||
Stock Issued During Period, Value, New Issues | (30) | (30) | ||||
Stock Repurchased and Retired During Period, Shares | (3,101) | |||||
Stock Repurchased and Retired During Period, Value | $ (305) | (61) | (244) | |||
Ending balance (in shares) at Dec. 31, 2019 | 291,000 | 290,609 | ||||
Ending balance at Dec. 31, 2019 | $ 7,237 | $ 3 | $ 0 | $ 7,267 | $ (33) | |
[1] | Derived from audited Consolidated Financial Statements. |
Description Of Business And Bas
Description Of Business And Basis Of Presentation | 9 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description Of Business And Basis Of Presentation | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION We are a global leader in digital interactive entertainment, with a mission to inspire the world to play. We develop, market, publish and deliver games and services that can be played and watched on a variety of platforms, including game consoles, PCs, mobile phones and tablets. In our games and services, we use brands that we either wholly own (such as Battlefield, The Sims, Apex Legends, Anthem, Need for Speed and Plants v. Zombies) or license from others (such as FIFA, Madden NFL and Star Wars). We develop and publish games and services across diverse genres, such as sports, first-person shooter, action, role-playing and simulation, and offer our games and services through diverse business models and distribution channels, such as retail, download, subscription and free-to-play. We believe that the breadth and depth of our portfolio and our flexibility in business models and distribution channels provide us with strategic advantages. Our fiscal year is reported on a 52 - or 53 -week period that ends on the Saturday nearest March 31. Our results of operations for the fiscal year ending March 31, 2020 contains 52 weeks and ends on March 28, 2020. Our results of operations for the fiscal year ended March 31, 2019 contained 52 weeks and ended on March 30, 2019. Our results of operations for the three months ended December 31, 2019 and 2018 contained 13 weeks each and ended on December 28, 2019 and December 29, 2018, respectively. Our results of operations for the nine months ended December 31, 2019 and 2018 contained 39 weeks each and ended on December 28, 2019 and December 29, 2018, respectively. For simplicity of disclosure, all fiscal periods are referred to as ending on a calendar month end. The Condensed Consolidated Financial Statements are unaudited and reflect all adjustments (consisting only of normal recurring accruals unless otherwise indicated) that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods presented. The preparation of these Condensed Consolidated Financial Statements requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. The results of operations for the current interim periods are not necessarily indicative of results to be expected for the current year or any other period. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019 , as filed with the United States Securities and Exchange Commission (“SEC”) on May 24, 2019 . Recently Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ASC Topic 842” or the “New Lease Standard”). The FASB issued this standard to increase transparency and comparability among organizations by recognizing right-of-use (“ROU”) lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. We adopted the New Lease Standard on April 1, 2019, the beginning of fiscal year 2020, using the optional transition method which allows us to use the effective date of the New Lease Standard as the date of initial application on transition, instead of at the beginning of the earliest comparative period presented. Accordingly, we did not adjust prior periods for the effects of the New Lease Standard. Additionally, we elected to apply the package of practical expedients, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our assessment of initial direct costs for any leases that exist prior to adoption of the new lease standard. The adoption of the New Lease Standard on April 1, 2019 resulted in the recognition of operating lease ROU assets of $215 million , current operating lease liabilities of $50 million , and noncurrent operating lease liabilities of $197 million on our Condensed Consolidated Balance Sheet. In addition, upon transition, we eliminated prepaid rent assets of $6 million and deferred rent liabilities of $38 million . Operating lease ROU assets, operating lease liabilities, and noncurrent operating lease liabilities are included in other assets, accrued and other current liabilities, and other liabilities, respectively. The adoption of the New Lease Standard did not have an impact on our Condensed Consolidated Statements of Operations or Cash Flows. BALANCE SHEETS Balance at March 31, 2019 Adjustments due to New Lease Standard Adoption Balance at April 1, 2019 Assets Other current assets $ 313 $ (6 ) $ 307 Other assets 114 215 329 Liabilities Accrued and other current liabilities $ 1,052 $ 47 $ 1,099 Other liabilities 132 162 294 See Note 11 — Leases for additional information on leases. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This update is intended to make more financial and nonfinancial hedging strategies eligible for hedge accounting, simplify the application of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness, and increase transparency around the scope and results of hedging programs. We adopted ASU 2017-12 in the first quarter of fiscal 2020, using a modified-retrospective approach. Upon adoption of ASU 2017-12, we no longer measure and report hedge ineffectiveness separately. We instead present the entire change in the fair value of a hedging instrument in the same Condensed Consolidated Statements of Operations line as the hedged item. Additionally, the amount historically excluded from the assessment of hedge effectiveness for our cash flow hedges is now recognized into the Condensed Consolidated Statements of Operations in the period when the forecasted transaction is recognized. The cumulative-effect adjustment from the adoption had a de minimis impact on our Condensed Consolidated Financial Statements. See Note 4 — Derivative Financial Instruments for more information. Other Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The update changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This update replaces the existing incurred loss impairment model with an expected loss model. It also requires credit losses related to available-for-sale debt securities to be recognized as an allowance for credit losses rather than as a reduction to the carrying value of the securities. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief , which provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. This update is effective for us beginning in the first quarter of fiscal year 2021. We are evaluating the impact of this new standard but do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This update eliminates, adds, and modifies certain fair value measurement disclosure requirements. This update is effective for us beginning in the first quarter of fiscal 2021. We do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update requires a customer in a cloud computing service arrangement to follow the internal-use software guidance in order to determine which implementation costs to defer and recognize as an asset. This update is effective for us beginning in the first quarter of fiscal year 2021. We do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. In December 2019, the FASB issued ASC 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This update is effective for us beginning in the first quarter of fiscal year 2022. Early adoption is permitted. We are currently evaluating the impact of this new standard on our Condensed Consolidated Financial Statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (2) FAIR VALUE MEASUREMENTS There are various valuation techniques used to estimate fair value, the primary one being the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability. We measure certain financial and nonfinancial assets and liabilities at fair value on a recurring and nonrecurring basis. Fair Value Hierarchy The three levels of inputs that may be used to measure fair value are as follows: • Level 1 . Quoted prices in active markets for identical assets or liabilities. • Level 2 . Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. • Level 3 . Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of assets or liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of December 31, 2019 and March 31, 2019 , our assets and liabilities that were measured and recorded at fair value on a recurring basis were as follows (in millions): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 85 $ 85 $ — $ — Cash equivalents Money market funds 1,352 1,352 — — Cash equivalents Available-for-sale securities: Corporate bonds 837 — 837 — Short-term investments and cash equivalents U.S. Treasury securities 459 459 — — Short-term investments and cash equivalents U.S. agency securities 8 — 8 — Short-term investments Commercial paper 438 — 438 — Short-term investments and cash equivalents Foreign government securities 48 — 48 Short-term investments Asset-backed securities 281 — 281 — Short-term investments Certificates of deposit 43 — 43 — Short-term investments Foreign currency derivatives 22 — 22 — Other current assets and other assets Deferred compensation plan assets (a) 14 14 — — Other assets Total assets at fair value $ 3,587 $ 1,910 $ 1,677 $ — Liabilities Contingent consideration (b) $ 35 $ 35 $ — $ — Accrued and other current liabilities Foreign currency derivatives 9 — 9 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 14 14 — — Other liabilities Total liabilities at fair value $ 58 $ 49 $ 9 $ — Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of March 31, 2019 (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 23 $ 23 $ — $ — Cash equivalents Money market funds 2,704 2,704 — — Cash equivalents Available-for-sale securities: Corporate bonds 327 — 327 — Short-term investments and cash equivalents U.S. Treasury securities 294 294 — — Short-term investments and cash equivalents U.S. agency securities 57 — 57 — Short-term investments and cash equivalents Commercial paper 233 — 233 — Short-term investments and cash equivalents Foreign government securities 58 — 58 — Short-term investments and cash equivalents Asset-backed securities 55 — 55 — Short-term investments and cash equivalents Certificates of deposit 2 — 2 — Short-term investments and cash equivalents Foreign currency derivatives 33 — 33 — Other current assets and other assets Deferred compensation plan assets (a) 11 11 — — Other assets Total assets at fair value $ 3,797 $ 3,032 $ 765 $ — Liabilities Contingent consideration (b) $ 136 $ — $ — $ 136 Accrued and other current liabilities Foreign currency derivatives 16 — 16 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 12 12 — — Other liabilities Total liabilities at fair value $ 164 $ 12 $ 16 $ 136 (a) The Deferred Compensation Plan assets consist of various mutual funds. See Note 15 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019 , for additional information regarding our Deferred Compensation Plan. (b) The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with our acquisition of Respawn Entertainment, LLC (“Respawn”) that is contingent upon the achievement of certain performance milestones. As of March 31, 2019, we estimated fair value using a probability-weighted income approach combined with a real options methodology, and applied a discount rate that appropriately captures the risk associated with the obligation, ranging from 2.9 percent to 3.1 percent . During the nine months ended December 31, 2019 , there were no material changes to the estimated fair value of the contingent consideration liability other than $105 million in payments for performance milestones achieved. As of December 31, 2019 , all remaining performance milestones have been achieved and the $35 million remaining payment amount was fixed and was paid in the fourth quarter of fiscal year 2020. See Note 7 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Cash and Cash Equivalents As of December 31, 2019 and March 31, 2019 , our cash and cash equivalents were $3,603 million and $4,708 million , respectively. Cash equivalents were valued using quoted market prices or other readily available market information. Short-Term Investments Short-term investments consisted of the following as of December 31, 2019 and March 31, 2019 (in millions): As of December 31, 2019 As of March 31, 2019 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 811 $ 1 $ — $ 812 $ 325 $ — $ (1 ) $ 324 U.S. Treasury securities 413 — — 413 153 — — 153 U.S. agency securities 8 — — 8 44 — — 44 Commercial paper 393 1 — 394 112 — — 112 Foreign government securities 48 — — 48 50 — — 50 Asset-backed securities 281 — — 281 53 — — 53 Certificates of deposit 43 — — 43 1 — — 1 Short-term investments $ 1,997 $ 2 $ — $ 1,999 $ 738 $ — $ (1 ) $ 737 The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of December 31, 2019 and March 31, 2019 (in millions): As of December 31, 2019 As of March 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due within 1 year $ 1,573 $ 1,574 $ 449 $ 448 Due 1 year through 5 years 412 413 287 287 Due after 5 years 12 12 2 2 Short-term investments $ 1,997 $ 1,999 $ 738 $ 737 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Assets or liabilities associated with our derivative instruments and hedging activities are recorded at fair value in other current assets/other assets, or accrued and other current liabilities/other liabilities, respectively, on our Condensed Consolidated Balance Sheets. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on the use of the derivative instrument and whether it is designated and qualifies for hedge accounting. We transact business in various foreign currencies and have significant international sales and expenses denominated in foreign currencies, subjecting us to foreign currency risk. We purchase foreign currency forward contracts, generally with maturities of 18 months or less, to reduce the volatility of cash flows primarily related to forecasted revenue and expenses denominated in certain foreign currencies. Our cash flow risks are primarily related to fluctuations in the Euro, British pound sterling, Canadian dollar, Swedish krona, Australian dollar, Chinese yuan, South Korean won and Polish zloty. In addition, we utilize foreign currency forward contracts to mitigate foreign currency exchange risk associated with foreign-currency-denominated monetary assets and liabilities, primarily intercompany receivables and payables. The foreign currency forward contracts not designated as hedging instruments generally have a contractual term of approximately three months or less and are transacted near month-end. We do not use foreign currency forward contracts for speculative trading purposes. Cash Flow Hedging Activities Certain of our forward contracts are designated and qualify as cash flow hedges. The effectiveness of the cash flow hedge contracts, including time value, is assessed monthly using regression analysis, as well as other timing and probability criteria. To qualify for hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedges and must be highly effective in offsetting changes to future cash flows on hedged transactions. The derivative assets or liabilities associated with our hedging activities are recorded at fair value in other current assets/other assets, or accrued and other current liabilities/other liabilities, respectively, on our Condensed Consolidated Balance Sheets. The gains or losses resulting from changes in the fair value of these hedges is initially reported, net of tax, as a component of accumulated other comprehensive income (loss) in stockholders’ equity. The gross amount of gains or losses resulting from changes in the fair value of these hedges is subsequently reclassified into net revenue or research and development expenses, as appropriate, in the period when the forecasted transaction is recognized in our Condensed Consolidated Statements of Operations. In the event that the underlying forecasted transactions do not occur, or it becomes remote that they will occur, within the defined hedge period, the gains or losses on the related cash flow hedges are reclassified from accumulated other comprehensive income (loss) to net revenue or research and development expenses, in our Condensed Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows (in millions): As of December 31, 2019 As of March 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 254 $ 1 $ 2 $ 295 $ — $ 10 Forward contracts to sell $ 938 $ 18 $ 4 $ 1,355 $ 31 $ 4 The effects of cash flow hedge accounting in our Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2019 and 2018 are as follows (in millions): Amount of Gain (Loss) Recognized in the Statements of Operations Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Net revenue Research and development Net revenue Research and development Net revenue Research and development Net revenue Research and development Total amounts presented in our Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 1,593 $ 389 $ 1,289 $ 334 $ 4,150 $ 1,157 $ 3,712 $ 1,035 Gains (losses) on foreign currency forward contracts designated as cash flow hedges $ 18 $ (1 ) $ 13 $ (2 ) $ 59 $ (8 ) $ 1 $ (6 ) The amounts excluded from the assessment of hedge effectiveness were gains of $6 million and $20 million during the three and nine months ended December 31, 2018 , respectively, and recognized in interest and other income (expense), net. Balance Sheet Hedging Activities Our foreign currency forward contracts that are not designated as hedging instruments are accounted for as derivatives whereby the fair value of the contracts are reported as other current assets or accrued and other current liabilities on our Condensed Consolidated Balance Sheets, and gains and losses resulting from changes in the fair value are reported in interest and other income (expense), net, in our Condensed Consolidated Statements of Operations. The gains and losses on these foreign currency forward contracts generally offset the gains and losses in the underlying foreign-currency-denominated monetary assets and liabilities, which are also reported in interest and other income (expense), net, in our Condensed Consolidated Statements of Operations. Total gross notional amounts and fair values for currency derivatives that are not designated as hedging instruments are accounted for as follows (in millions): As of December 31, 2019 As of March 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 624 $ 1 $ 1 $ 449 $ — $ 2 Forward contracts to sell $ 936 $ 2 $ 2 $ 394 $ 2 $ — The effect of foreign currency forward contracts not designated as hedging instruments in our Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2019 and 2018 was as follows (in millions): Amount of Gain (Loss) Recognized in the Statements of Operations Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest and other income (expense), net Total amounts presented in our Condensed Consolidated Statements of Operations in which the effects of balance sheet hedges are recorded $ 13 $ 23 $ 50 $ 60 Gain (losses) on foreign currency forward contracts not designated as hedging instruments $ (1 ) $ 21 $ (4 ) $ 25 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended December 31, 2019 and 2018 are as follows (in millions): Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of September 30, 2019 $ 2 $ 47 $ (59 ) $ (10 ) Other comprehensive income (loss) before reclassifications (1 ) (12 ) 7 (6 ) Amounts reclassified from accumulated other comprehensive income (loss) — (17 ) — (17 ) Total other comprehensive income (loss), net of tax (1 ) (29 ) 7 (23 ) Balances as of December 31, 2019 $ 1 $ 18 $ (52 ) $ (33 ) Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of September 30, 2018 $ (7 ) $ 30 $ (42 ) $ (19 ) Other comprehensive income (loss) before reclassifications 1 22 (11 ) 12 Amounts reclassified from accumulated other comprehensive income (loss) 1 (11 ) — (10 ) Total other comprehensive income (loss), net of tax 2 11 (11 ) 2 Balances as of December 31, 2018 $ (5 ) $ 41 $ (53 ) $ (17 ) The changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended December 31, 2019 and 2018 are as follows (in millions): Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2019 $ (1 ) $ 22 $ (51 ) $ (30 ) Other comprehensive income (loss) before reclassifications 3 47 (1 ) 49 Amounts reclassified from accumulated other comprehensive income (loss) (1 ) (51 ) — (52 ) Total other comprehensive income (loss), net of tax 2 (4 ) (1 ) (3 ) Balances as of December 31, 2019 $ 1 $ 18 $ (52 ) $ (33 ) Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2018 $ (8 ) $ (89 ) $ (30 ) $ (127 ) Cumulative-effect adjustment from the adoption of ASC 606 — 22 — 22 Cumulative-effect adjustment from the adoption of ASU 2018-02 — 1 — 1 Balances as of April 1, 2018 (8 ) (66 ) (30 ) (104 ) Other comprehensive income (loss) before reclassifications 2 102 (23 ) 81 Amounts reclassified from accumulated other comprehensive income (loss) 1 5 — 6 Total other comprehensive income (loss), net of tax 3 107 (23 ) 87 Balances as of December 31, 2018 $ (5 ) $ 41 $ (53 ) $ (17 ) The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three and nine months ended December 31, 2019 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended Nine Months Ended (Gains) losses on foreign currency forward contracts designated as cash flow hedges Net revenue $ (18 ) $ (59 ) Research and development 1 8 Total, net of tax $ (17 ) $ (51 ) The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three and nine months ended December 31, 2018 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended Nine Months Ended (Gains) losses on foreign currency forward contracts designated as cash flow hedges Net revenue $ (13 ) $ (1 ) Research and development 2 6 Total, net of tax $ (11 ) $ 5 |
Goodwill And Acquisition-Relate
Goodwill And Acquisition-Related Intangibles, Net | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Acquisition-Related Intangibles, Net | GOODWILL AND ACQUISITION-RELATED INTANGIBLES, NET The changes in the carrying amount of goodwill for the nine months ended December 31, 2019 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,260 $ — $ — $ 2,260 Accumulated impairment (368 ) — — (368 ) Total $ 1,892 $ — $ — $ 1,892 Goodwill represents the excess of the purchase price over the fair value of the underlying acquired net tangible and intangible assets. Acquisition-related intangibles consisted of the following (in millions): As of December 31, 2019 As of March 31, 2019 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 474 $ (444 ) $ 30 $ 469 $ (427 ) $ 42 Trade names and trademarks 161 (129 ) 32 161 (121 ) 40 Registered user base and other intangibles 5 (5 ) — 5 (5 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — In-process research and development — — — 5 — 5 Total $ 725 $ (663 ) $ 62 $ 725 $ (638 ) $ 87 Amortization of intangibles for the three and nine months ended December 31, 2019 and 2018 are classified in the Condensed Consolidated Statements of Operations as follows (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of product $ 3 $ 1 $ 3 $ 3 Cost of service and other 2 — 6 — Operating expenses 5 6 16 18 Total $ 10 $ 7 $ 25 $ 21 Acquisition-related intangible assets are amortized using the straight-line method over the lesser of their estimated useful lives or the agreement terms, ranging from 1 to 5 years . As of December 31, 2019 and March 31, 2019 , the weighted-average remaining useful life for acquisition-related intangible assets was approximately 2.5 years and 3.2 years , respectively. As of December 31, 2019 , future amortization of finite-lived acquisition-related intangibles that will be recorded in the Condensed Consolidated Statements of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2020 (remaining three months) $ 10 2021 22 2022 22 2023 8 2024 and thereafter — Total $ 62 |
Royalties And Licenses
Royalties And Licenses | 9 Months Ended |
Dec. 31, 2019 | |
Royalties And Licenses [Abstract] | |
Royalties And Licenses | ROYALTIES AND LICENSES Our royalty expenses consist of payments to (1) content licensors, (2) independent software developers, and (3) co-publishing and distribution affiliates. License royalties consist of payments made to celebrities, professional sports organizations, movie studios and other organizations for our use of their trademarks, copyrights, personal publicity rights, content and/or other intellectual property. Royalty payments to independent software developers are payments for the development of intellectual property related to our games. Co-publishing and distribution royalties are payments made to third parties for the delivery of products. During the three and nine months ended December 31, 2019 and 2018 , we did not recognize any material losses or impairment charges on royalty-based commitments, respectively. The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): As of As of Other current assets $ 36 $ 53 Other assets 26 30 Royalty-related assets $ 62 $ 83 At any given time, depending on the timing of our payments to our co-publishing and/or distribution affiliates, content licensors, and/or independent software developers, we classify any recognized unpaid royalty amounts due to these parties as accrued liabilities. The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions): As of As of Accrued royalties $ 244 $ 144 Other liabilities 32 51 Royalty-related liabilities $ 276 $ 195 As of December 31, 2019 , we were committed to pay approximately $796 million to content licensors, independent software developers, and co-publishing and/or distribution affiliates, but performance remained with the counterparty ( i.e. , delivery of the product or content or other factors) and such commitments were therefore not recorded in our Condensed Consolidated Financial Statements. See Note 12 for further information on our developer and licensor commitments. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | BALANCE SHEET DETAILS Property and Equipment, Net Property and equipment, net, as of December 31, 2019 and March 31, 2019 consisted of (in millions): As of As of Computer, equipment and software $ 753 $ 710 Buildings 348 343 Leasehold improvements 164 139 Equipment, furniture and fixtures, and other 85 80 Land 66 66 Construction in progress 3 21 1,419 1,359 Less: accumulated depreciation (980 ) (911 ) Property and equipment, net $ 439 $ 448 During the three and nine months ended December 31, 2019 , depreciation expense associated with property and equipment was $29 million and $89 million , respectively. During the three and nine months ended December 31, 2018 , depreciation expense associated with property and equipment was $30 million and $90 million , respectively. Accrued and Other Current Liabilities Accrued and other current liabilities as of December 31, 2019 and March 31, 2019 consisted of (in millions): As of As of Other accrued expenses $ 294 $ 290 Accrued compensation and benefits 280 238 Accrued royalties 244 144 Sales return and price protection reserves 174 150 Contingent consideration 35 136 Deferred net revenue (other) 102 94 Operating lease liabilities (See Note 11 ) 75 — Accrued and other current liabilities $ 1,204 $ 1,052 Deferred net revenue (other) includes the deferral of subscription revenue, advertising revenue, licensing arrangements, and other revenue for which the revenue recognition criteria has not been met. Deferred net revenue Deferred net revenue as of December 31, 2019 and March 31, 2019 consisted of (in millions): As of As of Deferred net revenue (online-enabled games) $ 1,073 $ 1,100 Deferred net revenue (other) 102 94 Deferred net revenue (noncurrent) 13 23 Total Deferred net revenue $ 1,188 $ 1,217 During the nine months ended December 31, 2019 , we recognized $1,169 million of revenue that was included in the deferred revenue balance as of March 31, 2019. Remaining Performance Obligations As of December 31, 2019 , revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes our deferred revenue balance of $1,188 million . These balances exclude any estimates for future variable consideration as we have elected the optional exemption to exclude sales-based royalty revenue. We expect to recognize substantially all of these balances as revenue over the next 12 months . |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes for the three and nine months ended December 31, 2019 is based on our projected annual effective tax rate for fiscal year 2020, adjusted for specific items that are required to be recognized in the period in which they are incurred. During the three months ended June 30, 2019, we completed an intra-entity sale of some of our intellectual property rights to our Swiss subsidiary, where our international business is headquartered (the “Swiss intra-entity sale”). The transaction did not result in a taxable gain. Under U.S. GAAP, any profit resulting from this intercompany transaction will be eliminated upon consolidation. However, the transaction resulted in a step-up of the Swiss tax-deductible basis in the transferred intellectual property rights and, accordingly, created a temporary difference between the book basis and the tax basis of such intellectual property rights (the “Swiss Deferred Tax Asset”). The Swiss Deferred Tax Asset will reverse over a 20-year period and is subject to a periodic realizability analysis. Switzerland allows losses to carry forward for seven-years and does not permit the carry back of losses. The Swiss Deferred Tax Asset and the one-time tax benefit was measured and will be periodically remeasured based on the Swiss tax rate in effect for the years the asset will be recovered. The transaction resulted in the recognition of a $1.17 billion net Swiss Deferred Tax Asset, which is net of the impact of the Ninth Circuit Court of Appeals in Altera Corp. v Commissioner opinion (“the Altera opinion”) on the transaction and a valuation allowance, as of June 30, 2019. Separately, during the three months ended September 30, 2019, Switzerland enacted a new statutory tax rate. As a result of the enactment, we remeasured our Swiss deferred taxes and recognized an additional net tax benefit of $630 million through continuing operations (“Swiss rate change benefit”). As of September 30, 2019 and December 31, 2019, the net Swiss Deferred Tax Asset is $1.8 billion , which is net of a $0.2 billion valuation allowance and a $0.4 billion reduction due to the Altera opinion. The valuation allowance increased by $0.1 billion during the three months ended September 30, 2019 due to the enactment of a new statutory tax rate in Switzerland. There was no material change to the valuation allowance during the three months ended December 31, 2019. The Altera opinion also requires related parties in an intercompany cost-sharing arrangement to share stock-based compensation expenses. The Altera opinion resulted in the recognition of $90 million of unrecognized tax benefits related to U.S. uncertain tax positions during the three months ended June 30, 2019. Our effective tax rates for the three and nine months ended December 31, 2019 were 7.5 percent and negative 139.6 percent , respectively, as compared to 1.1 percent and 5.8 percent , for the same periods in fiscal year 2019. Excluding the impacts of the Swiss rate change benefit, the Swiss Deferred Tax Asset, and Altera opinion, our effective tax rates for the three and nine months ended December 31, 2019 would have been 15.8 percent and 14.4 percent , respectively, which was higher than the same periods in fiscal year 2019 primarily due to an increase in U.S. taxes on foreign earnings in fiscal year 2020. When compared to the statutory rate of 21 percent , the effective tax rates for the three and nine months ended December 31, 2019 were significantly lower primarily due to the recognition of the Swiss rate change benefit, the Swiss Deferred Tax Asset and earnings realized in countries that have lower statutory tax rates, partially offset by the unrecognized tax benefits associated with the Altera opinion. We file income tax returns and are subject to income tax examinations in various jurisdictions with respect to fiscal years after 2009. The timing and potential resolution of income tax examinations is highly uncertain. While we continue to measure our uncertain tax positions, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued. During the three months ended December 31, 2019 , the Ninth Circuit Court of Appeals denied en banc review of the Altera opinion. A final determination of Altera is reasonably possible within the next 12 months. If the Altera opinion stands, it would result in a $0.5 billion reduction of our unrecognized tax benefits; approximately $0.1 billion of which relates to U.S. uncertain tax positions recognized as of December 31, 2019 and approximately $0.4 billion of which reduced the Swiss Deferred Tax Asset recognized as of December 31, 2019. It is also reasonably possible that an additional reduction of up to $15 million of unrecognized tax benefits may occur within the next 12 months, unrelated to the Altera opinion, a portion of which would impact our effective tax rate. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements and tax interpretations. |
Financing Arrangement
Financing Arrangement | 9 Months Ended |
Dec. 31, 2019 | |
Debt Instruments [Abstract] | |
Financing Arrangement | FINANCING ARRANGEMENTS Senior Notes In February 2016 , we issued $600 million aggregate principal amount of 3.70% Senior Notes due March 1, 2021 (the “2021 Notes”) and $400 million aggregate principal amount of 4.80% Senior Notes due March 1, 2026 (the “2026 Notes,” and together with the 2021 Notes, the “Senior Notes”). Our proceeds were $989 million , net of discount of $2 million and issuance costs of $9 million . Both the discount and issuance costs are being amortized to interest expense over the respective terms of the 2021 Notes and the 2026 Notes using the effective interest rate method. The effective interest rate is 3.94% for the 2021 Notes and 4.97% for the 2026 Notes. Interest is payable semiannually in arrears, on March 1 and September 1 of each year. The carrying and fair values of the Senior Notes are as follows (in millions): As of As of Senior Notes: 3.70% Senior Notes due 2021 $ 600 $ 600 4.80% Senior Notes due 2026 400 400 Total principal amount $ 1,000 $ 1,000 Unaccreted discount (1 ) (1 ) Unamortized debt issuance costs (4 ) (5 ) Net carrying value of Senior Notes $ 995 $ 994 Fair value of Senior Notes (Level 2) $ 1,062 $ 1,039 As of December 31, 2019 , the remaining life of the 2021 Notes and 2026 Notes is approximately 1.2 years and 6.2 years , respectively. The Senior Notes are senior unsecured obligations and rank equally with all our other existing and future unsubordinated obligations and any indebtedness that we may incur from time to time under our Credit Facility. The 2021 Notes and the 2026 Notes are redeemable at our option at any time prior to February 1, 2021 or December 1, 2025, respectively, subject to a make-whole premium. Within one and three months of maturity, we may redeem the 2021 Notes or the 2026 Notes, respectively, at a redemption price equal to 100% of the aggregate principal amount plus accrued and unpaid interest. In addition, upon the occurrence of a change of control repurchase event, the holders of the Senior Notes may require us to repurchase all or a portion of the Senior Notes, at a price equal to 101% of their principal amount, plus accrued and unpaid interest to the date of repurchase. The Senior Notes also include covenants that limit our ability to incur liens on assets and to enter into sale and leaseback transactions, subject to certain allowances. Credit Facility On August 29, 2019 , we entered into a $500 million unsecured revolving credit facility (“Credit Facility”) with a syndicate of banks. The Credit Facility terminates on August 29, 2024 unless the maturity is extended in accordance with its terms. The Credit Facility contains an option to arrange with existing lenders and/or new lenders to provide up to an aggregate of $500 million in additional commitments for revolving loans. Proceeds of loans made under the Credit Facility may be used for general corporate purposes. The loans bear interest, at our option, at the base rate plus an applicable spread or an adjusted LIBOR rate plus an applicable spread, in each case with such spread being determined based on our debt credit ratings. We are also obligated to pay other customary fees for a credit facility of this size and type. Interest is due and payable in arrears quarterly for loans bearing interest at the base rate and at the end of an interest period (or at each three month interval in the case of loans with interest periods greater than three months) in the case of loans bearing interest at the adjusted LIBOR rate. Principal, together with all accrued and unpaid interest, is due and payable at maturity. We may prepay the loans and terminate the commitments, in whole or in part, at any time without premium or penalty, subject to certain conditions. The credit agreement contains customary affirmative and negative covenants, including covenants that limit or restrict our ability to, among other things, incur subsidiary indebtedness, grant liens, and dispose of all or substantially all assets, in each case subject to customary exceptions for a credit facility of this size and type. We are also required to maintain compliance with a debt to EBITDA ratio. As of December 31, 2019 , we were in compliance with the debt to EBITDA ratio. The credit agreement contains customary events of default, including among others, non-payment defaults, covenant defaults, cross-defaults to material indebtedness, bankruptcy and insolvency defaults, material judgment defaults and a change of control default, in each case, subject to customary exceptions for a credit facility of this size and type. The occurrence of an event of default could result in the acceleration of the obligations under the Credit Facility and an increase in the applicable interest rate. As of December 31, 2019 , no amounts were outstanding under the Credit Facility. $2 million of debt issuance costs that were paid in connection with obtaining this credit facility are being amortized to interest expense over the 5 -year term of the Credit Facility. Interest Expense The following table summarizes our interest expense recognized for the three and nine months ended December 31, 2019 and 2018 that is included in interest and other income (expense), net on our Condensed Consolidated Statements of Operations (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Amortization of debt issuance costs $ — $ — $ (1 ) $ (1 ) Coupon interest expense (10 ) (10 ) (31 ) (31 ) Other interest expense — (1 ) — (1 ) Total interest expense $ (10 ) $ (11 ) $ (32 ) $ (33 ) |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES Our leases primarily consist of facility leases for our offices and development studios, data centers, and server equipment, with remaining lease terms up to 15 years . Our lease terms may include options to extend or terminate the lease. When it is reasonably certain that we will exercise that option, we include the renewals or reduced lease terms in our calculation of operating lease liabilities. All of our leases are classified as operating leases. We determine if an arrangement is or contains a lease at contract inception. The contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In determining if a contract is or contains a lease, we apply judgment whether the contract provides the right to obtain substantially all of the economic benefits, the right to direct, or control the use of the identified asset throughout the period of use. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of future lease payments over the lease term. In determining the present value of the future lease payments, we use our incremental borrowing rate as none of our leases provide an implicit rate. Our incremental borrowing rate is an assumed rate based on our credit rating, credit history, current economic environment, and the lease term. Operating lease ROU assets are further adjusted for any payments made, incentives received, and initial direct costs incurred prior to the commencement date. Operating lease ROU assets are amortized on a straight-line basis over the lease term and recognized as lease expense within cost of revenue or operating expenses on our Condensed Consolidated Statements of Operations. Operating lease liabilities decrease by lease payments we make over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Some of our operating leases contain lease and non-lease components. Non-lease components primarily include fixed payments for common area maintenance and utilities. We elected to account for lease and non-lease components as a single lease component. Variable lease and non-lease components are recognized on our Condensed Consolidated Statements of Operations as incurred. The components of lease expense are as follows (in millions): Three Months Ended Nine Months Ended Operating lease costs $ 18 $ 52 Variable lease costs 9 29 Short-term lease costs 2 11 Total lease expense $ 29 $ 92 Supplemental cash and noncash information related to our operating leases are as follows (in millions): Nine Months Ended Cash paid for amounts included in the measurement of lease liability $ 47 ROU assets obtained in exchange for new lease obligations $ 49 Weighted average remaining lease term and discount rate are as follows: At December 31, 2019 Lease term 4.9 years Discount rate 3.4 % Operating lease ROU assets and liabilities recorded on our Condensed Consolidated Balance Sheet as of April 1, 2019 and December 31, 2019 , are as follows (in millions): Balance at April 1, 2019 Balance as of December 31, 2019 Balance Sheet Classification Operating lease ROU assets $ 215 $ 206 Other assets Operating lease liabilities $ 50 $ 75 Accrued and other current liabilities Noncurrent operating lease liabilities 197 168 Other liabilities Total operating lease liabilities $ 247 $ 243 Future minimum lease payments under operating leases as of December 31, 2019 were as follows (in millions): Fiscal Years Ending March 31, 2020 (remaining three months) $ 22 2021 74 2022 59 2023 35 2024 28 2025 19 Thereafter 26 Total future lease payments 263 Less imputed interest (20 ) Total operating lease liabilities $ 243 Future minimum lease payments as of March 31, 2019, prior to our adoption of the New Lease Standard, were as follows (in millions): Fiscal Years Ending March 31, 2020 $ 52 2021 54 2022 44 2023 36 2024 28 Thereafter 50 Total future lease payments $ 264 As of December 31, 2019 , we have entered into two office leases that have not yet commenced with future lease payments of approximately $177 million . These office leases are expected to commence in fiscal year 2021 and 2023, and will have lease terms ranging from 12 years to 15 years . |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Development, Celebrity, League and Content Licenses: Payments and Commitments The products we produce in our studios are designed and created by our employee designers, artists, software programmers and by non-employee software developers (“independent artists” or “third-party developers”). We typically advance development funds to the independent artists and third-party developers during development of our games, usually in installment payments made upon the completion of specified development milestones. Contractually, these payments are generally considered advances against subsequent royalties on the sales of the products. These terms are set forth in written agreements entered into with the independent artists and third-party developers. In addition, we have certain celebrity, league and content license contracts that contain minimum guarantee payments and marketing commitments that may not be dependent on any deliverables. Celebrities and organizations with whom we have contracts include, but are not limited to: FIFA (Fédération Internationale de Football Association), FIFPRO Foundation, FAPL (Football Association Premier League Limited), and DFL Deutsche Fußball Liga E.V. (German Soccer League) (professional soccer); Liga Nacional De Futbol Profesional (professional soccer); National Basketball Association and National Basketball Players Association (professional basketball); National Hockey League and NHL Players’ Association (professional hockey); National Football League Properties and PLAYERS Inc. (professional football); William Morris Endeavor Entertainment LLC (professional mixed martial arts); ESPN (content in EA SPORTS games); Disney Interactive (Star Wars); and Fox Digital Entertainment, Inc. (The Simpsons). These developer and content license commitments represent the sum of (1) the cash payments due under non-royalty-bearing licenses and services agreements and (2) the minimum guaranteed payments and advances against royalties due under royalty-bearing licenses and services agreements, the majority of which are conditional upon performance by the counterparty. These minimum guarantee payments and any related marketing commitments are included in the table below. The following table summarizes our minimum contractual obligations as of December 31, 2019 (in millions): Fiscal Years Ending March 31, 2020 (Remaining Total three mos.) 2021 2022 2023 2024 2025 Thereafter Unrecognized commitments Developer/licensor commitments $ 796 $ 27 $ 249 $ 252 $ 108 $ 93 $ 63 $ 4 Marketing commitments 315 16 101 88 42 40 28 — Senior Notes interest 145 7 41 20 20 19 19 19 Operating lease imputed interest 20 2 6 4 3 3 1 1 Operating leases not yet commenced 177 — — — 8 13 13 143 Other purchase obligations 105 6 44 43 8 2 2 — Total unrecognized commitments 1,558 58 441 407 189 170 126 167 Recognized commitments Senior Notes principal and interest 1,014 14 600 — — — — 400 Operating leases 243 20 68 55 32 25 18 25 Transition and other taxes 74 6 23 24 3 5 5 8 Licensing commitments 59 6 26 27 — — — — Total recognized commitments 1,390 46 717 106 35 30 23 433 Total commitments $ 2,948 $ 104 $ 1,158 $ 513 $ 224 $ 200 $ 149 $ 600 The unrecognized amounts represented in the table above reflect our minimum cash obligations for the respective fiscal years, but do not necessarily represent the periods in which they will be recognized and expensed in our Condensed Consolidated Financial Statements. In addition, the amounts in the table above are presented based on the dates the amounts are contractually due as of December 31, 2019 ; however, certain payment obligations may be accelerated depending on the performance of our operating results. Furthermore, up to $20 million of the unrecognized amounts in the table above may be payable, at the licensor’s election, in shares of our common stock, subject to a $10 million maximum during any fiscal year. The number of shares to be issued will be based on their fair market value at the time of issuance. In addition to what is included in the table above, as of December 31, 2019 , we had a liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $330 million , of which we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur. Also, in addition to what is included in the table above, as of December 31, 2019 , we will pay $35 million of cash consideration in connection with the December 1, 2017 acquisition of Respawn based on the achievement of certain performance milestones. As of December 31, 2019 , we have recorded $35 million of contingent consideration on our Condensed Consolidated Balance Sheet. Legal Proceedings We are subject to claims and litigation arising in the ordinary course of business. We do not believe that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would have a material adverse effect on our Condensed Consolidated Financial Statements. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION Valuation Assumptions We recognize compensation cost for stock-based awards to employees based on the awards’ estimated grant-date fair value using a straight-line approach over the service period for which such awards are expected to vest. We account for forfeitures as they occur. The estimation of the fair value of market-based restricted stock units, stock options and ESPP purchase rights is affected by assumptions regarding subjective and complex variables. Generally, our assumptions are based on historical information and judgment is required to determine if historical trends may be indicators of future outcomes. We estimate the fair value of our stock-based awards as follows: • Restricted Stock Units and Performance-Based Restricted Stock Units . The fair value of restricted stock units and performance-based restricted stock units (other than market-based restricted stock units) is determined based on the quoted market price of our common stock on the date of grant. • Market-Based Restricted Stock Units . Market-based restricted stock units consist of grants of performance-based restricted stock units to certain members of executive management that vest contingent upon the achievement of pre-determined market and service conditions (referred to herein as “market-based restricted stock units”). The fair value of our market-based restricted stock units is estimated using a Monte-Carlo simulation model. Key assumptions for the Monte-Carlo simulation model are the risk-free interest rate, expected volatility, expected dividends and correlation coefficient. • Stock Options and Employee Stock Purchase Plan . The fair value of stock options and stock purchase rights granted pursuant to our equity incentive plans and our 2000 Employee Stock Purchase Plan, as amended (“ESPP”), respectively, is estimated using the Black-Scholes valuation model based on the multiple-award valuation method. Key assumptions of the Black-Scholes valuation model are the risk-free interest rate, expected volatility, expected term and expected dividends. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. Expected volatility is based on a combination of historical stock price volatility and implied volatility of publicly-traded options on our common stock. An expected term is estimated based on historical exercise behavior, post-vesting termination patterns, options outstanding and future expected exercise behavior. The assumptions used in the Monte-Carlo simulation model to value our market-based restricted stock units were as follows: Three Months Ended Nine Months Ended Risk-free interest rate 1.6 % 1.6 - 1.8% Expected volatility 14 - 65% 14 - 65% Weighted-average volatility 30 % 29 % Expected dividends None None Stock Options The following table summarizes our stock option activity for the nine months ended December 31, 2019 : Options (in thousands) Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2019 1,375 $ 30.63 Granted 4 94.92 Exercised (196 ) 30.49 Forfeited, cancelled or expired — — Outstanding as of December 31, 2019 1,183 $ 30.86 4.14 $ 92 Vested and expected to vest 1,183 $ 30.86 4.14 $ 92 Exercisable as of December 31, 2019 1,183 $ 30.86 4.14 $ 92 The aggregate intrinsic value represents the total pre-tax intrinsic value based on our closing stock price as of December 31, 2019 , which would have been received by the option holders had all the option holders exercised their options as of that date. We issue new common stock from our authorized shares upon the exercise of stock options. Restricted Stock Units The following table summarizes our restricted stock unit activity for the nine months ended December 31, 2019 : Restricted Stock Rights (in thousands) Weighted- Average Grant Date Fair Values Outstanding as of March 31, 2019 4,960 $ 111.03 Granted 4,021 93.07 Vested (2,279 ) 108.74 Forfeited or cancelled (425 ) 107.29 Outstanding as of December 31, 2019 6,277 $ 100.61 Performance-Based Restricted Stock Units Our performance-based restricted stock units cliff vest after a four-year performance period contingent upon the achievement of pre-determined performance-based milestones based on our non-GAAP net revenue and free cash flow as well as service conditions. If these performance-based milestones are not met but service conditions are met, the performance-based restricted stock units will not vest, in which case any compensation expense we have recognized to date will be reversed. Each quarter, we update our assessment of the probability that the non-GAAP net revenue and free cash flow performance milestones will be achieved. We amortize the fair values of performance-based restricted stock units over the requisite service period. The performance-based restricted stock units contain threshold, target and maximum milestones for each of non-GAAP net revenue and free cash flow. The number of shares of common stock to be issued at vesting will range from zero percent to 200 percent of the target number of performance-based restricted stock units attributable to each performance-based milestone based on the company’s performance as compared to these threshold, target and maximum performance-based milestones. Each performance-based milestone is weighted evenly where 50 percent of the total performance-based restricted stock units that vest will be determined based on non-GAAP net revenue and the other 50 percent will be determined based on free cash flow. The number of shares that vest based on each performance-based milestone is independent from the other. The following table summarizes our performance-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the nine months ended December 31, 2019 : Performance- Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2019 579 $ 110.51 Granted — — Forfeited or cancelled — — Outstanding as of December 31, 2019 579 $ 110.51 Market-Based Restricted Stock Units Our market-based restricted stock units vest contingent upon the achievement of pre-determined market and service conditions. If these market conditions are not met but service conditions are met, the market-based restricted stock units will not vest; however, any compensation expense we have recognized to date will not be reversed. The number of shares of common stock to be issued at vesting will range from zero percent to 200 percent of the target number of market-based restricted stock units based on our total stockholder return (“TSR”) relative to the performance of companies in the NASDAQ-100 Index for each measurement period, over either a one-year, two-year cumulative and three-year cumulative period or over a two-year and four-year cumulative period. The following table summarizes our market-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the nine months ended December 31, 2019 : Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2019 958 $ 155.64 Granted 1,313 109.04 Vested (93 ) 109.05 Forfeited or cancelled (260 ) 137.05 Outstanding as of December 31, 2019 1,918 $ 128.51 Stock-Based Compensation Expense The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and the ESPP purchase rights included in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenue $ 1 $ 1 $ 3 $ 3 Research and development 60 49 170 135 Marketing and sales 10 8 27 24 General and administrative 20 17 56 49 Stock-based compensation expense $ 91 $ 75 $ 256 $ 211 During the three and nine months ended December 31, 2019 , we recognized a $6 million and a $17 million deferred income tax benefit, respectively, related to our stock-based compensation expense. During the three and nine months ended December 31, 2018 , we recognized a $14 million and a $31 million deferred income tax benefit, respectively, related to our stock-based compensation expense. As of December 31, 2019 , our total unrecognized compensation cost related to restricted stock units, market-based restricted stock units, performance-based restricted stock units was $610 million and is expected to be recognized over a weighted-average service period of 2.0 years . Of the $610 million of unrecognized compensation cost, $514 million relates to restricted stock units, $88 million relates to market-based restricted stock units, and $8 million relates to performance-based restricted stock units at 68 percent average payout. Stock Repurchase Program In May 2017, a Special Committee of our Board of Directors, on behalf of the full Board of Directors, authorized a program to repurchase up to $1.2 billion of our common stock. During the three months ended June 30, 2018 , we repurchased approximately 0.6 million shares for approximately $76 million under this program. This program was superseded and replaced by a new stock repurchase program approved in May 2018. In May 2018, a Special Committee of our Board of Directors, on behalf of the full Board of Directors, authorized a program to repurchase up to $2.4 billion of our common stock. This stock repurchase program superseded and replaced the May 2017 program, and expires on May 31, 2020. Under this program, we may purchase stock in the open market or through privately negotiated transactions in accordance with applicable securities laws, including pursuant to pre-arranged stock trading plans. The timing and actual amount of the stock repurchases will depend on several factors including price, capital availability, regulatory requirements, alternative investment opportunities and other market conditions. We are not obligated to repurchase a specific number of shares under this program and it may be modified, suspended or discontinued at any time. During the three and nine months ended December 31, 2019 , we repurchased approximately 3.1 million and 9.6 million shares for approximately $305 million and $916 million , respectively, under this program. During the three and nine months ended December 31, 2018 , we repurchased approximately 3.2 million and 7.2 million shares for approximately $292 million and $815 million , respectively, under the May 2018 program. We are actively repurchasing shares under this program. The following table summarizes total shares repurchased during the three and nine months ended December 31, 2019 and 2018 : May 2017 Program May 2018 Program Total (in millions) Shares Amount Shares Amount Shares Amount Three months ended December 31, 2019 — $ — 3.1 $ 305 3.1 $ 305 Nine months ended December 31, 2019 — $ — 9.6 916 9.6 $ 916 Three months ended December 31, 2018 — $ — 3.2 $ 292 3.2 $ 292 Nine months ended December 31, 2018 0.6 $ 76 7.2 815 7.8 $ 891 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table summarizes the computations of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock, restricted stock units, ESPP purchase rights, warrants, and other convertible securities using the treasury stock method. Three Months Ended Nine Months Ended (In millions, except per share amounts) 2019 2018 2019 2018 Net income $ 346 $ 262 $ 2,621 $ 810 Shares used to compute earnings per share: Weighted-average common stock outstanding — basic 292 302 294 304 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options 2 2 2 3 Weighted-average common stock outstanding — diluted 294 304 296 307 Earnings per share: Basic $ 1.18 $ 0.87 $ 8.91 $ 2.66 Diluted $ 1.18 $ 0.86 $ 8.85 $ 2.64 For the three and nine months ended December 31, 2019 , 2 million of restricted stock units and market-based restricted stock units were excluded from the treasury stock method computation of diluted shares as their inclusion would have had an antidilutive effect. Our performance-based restricted stock units, which are considered contingently issuable shares, are also excluded from the treasury stock method computation because the related performance-based milestones were not achieved as of the end of the reporting period. For the three and nine months ended December 31, 2018 |
Segment Information
Segment Information | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Our reporting segment is based upon: our internal organizational structure; the manner in which our operations are managed; the criteria used by our Chief Executive Officer, our Chief Operating Decision Maker (“CODM”), to evaluate segment performance; the availability of separate financial information; and overall materiality considerations. Our CODM currently reviews total company operating results to assess overall performance and allocate resources. As of December 31, 2019 , we have only one reportable segment, which represents our only operating segment. Information about our total net revenue by composition and by platform for the three and nine months ended December 31, 2019 and 2018 is presented below (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net revenue by composition Full game downloads $ 286 $ 247 $ 598 $ 511 Live services 677 480 1,981 1,502 Mobile 161 181 516 632 Total Digital 1,124 908 3,095 2,645 Packaged goods and other 469 381 1,055 1,067 Net revenue $ 1,593 $ 1,289 $ 4,150 $ 3,712 Digital net revenue includes full-game downloads, live services, and mobile revenue. Full game downloads includes revenue from digital sales of full games on console and PC. Live services includes revenue from sales of extra content for console, PC, browser games, game software licensed to our third-party publishing partners who distribute our games digitally, subscriptions, and advertising. Mobile includes revenue from the sale of full games and extra content on mobile phones and tablets. Packaged goods net revenue includes revenue from software that is sold physically. This includes (1) net revenue from game software sold physically through traditional channels such as brick and mortar retailers, and (2) our software licensing revenue from third parties (for example, makers of console platforms, personal computers or computer accessories) who include certain of our products for sale with their products (for example, OEM bundles). Other revenue includes our non-software licensing revenue. Three Months Ended Nine Months Ended 2019 2018 2019 2018 Platform net revenue Console $ 1,163 $ 885 $ 2,846 $ 2,507 PC / Browser 257 217 748 563 Mobile 169 181 542 634 Other 4 6 14 8 Net revenue $ 1,593 $ 1,289 $ 4,150 $ 3,712 Information about our operations in North America and internationally for the three and nine months ended December 31, 2019 and 2018 is presented below (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net revenue from unaffiliated customers North America $ 690 $ 519 $ 1,711 $ 1,436 International 903 770 2,439 2,276 Net revenue $ 1,593 $ 1,289 $ 4,150 $ 3,712 |
Description Of Business And B_2
Description Of Business And Basis Of Presentation (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ASC Topic 842” or the “New Lease Standard”). The FASB issued this standard to increase transparency and comparability among organizations by recognizing right-of-use (“ROU”) lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. We adopted the New Lease Standard on April 1, 2019, the beginning of fiscal year 2020, using the optional transition method which allows us to use the effective date of the New Lease Standard as the date of initial application on transition, instead of at the beginning of the earliest comparative period presented. Accordingly, we did not adjust prior periods for the effects of the New Lease Standard. Additionally, we elected to apply the package of practical expedients, which allows us to carryforward our historical lease classification, our assessment on whether a contract is or contains a lease, and our assessment of initial direct costs for any leases that exist prior to adoption of the new lease standard. The adoption of the New Lease Standard on April 1, 2019 resulted in the recognition of operating lease ROU assets of $215 million , current operating lease liabilities of $50 million , and noncurrent operating lease liabilities of $197 million on our Condensed Consolidated Balance Sheet. In addition, upon transition, we eliminated prepaid rent assets of $6 million and deferred rent liabilities of $38 million . Operating lease ROU assets, operating lease liabilities, and noncurrent operating lease liabilities are included in other assets, accrued and other current liabilities, and other liabilities, respectively. The adoption of the New Lease Standard did not have an impact on our Condensed Consolidated Statements of Operations or Cash Flows. BALANCE SHEETS Balance at March 31, 2019 Adjustments due to New Lease Standard Adoption Balance at April 1, 2019 Assets Other current assets $ 313 $ (6 ) $ 307 Other assets 114 215 329 Liabilities Accrued and other current liabilities $ 1,052 $ 47 $ 1,099 Other liabilities 132 162 294 See Note 11 — Leases for additional information on leases. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This update is intended to make more financial and nonfinancial hedging strategies eligible for hedge accounting, simplify the application of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness, and increase transparency around the scope and results of hedging programs. We adopted ASU 2017-12 in the first quarter of fiscal 2020, using a modified-retrospective approach. Upon adoption of ASU 2017-12, we no longer measure and report hedge ineffectiveness separately. We instead present the entire change in the fair value of a hedging instrument in the same Condensed Consolidated Statements of Operations line as the hedged item. Additionally, the amount historically excluded from the assessment of hedge effectiveness for our cash flow hedges is now recognized into the Condensed Consolidated Statements of Operations in the period when the forecasted transaction is recognized. The cumulative-effect adjustment from the adoption had a de minimis impact on our Condensed Consolidated Financial Statements. See Note 4 — Derivative Financial Instruments for more information. Other Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The update changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. This update replaces the existing incurred loss impairment model with an expected loss model. It also requires credit losses related to available-for-sale debt securities to be recognized as an allowance for credit losses rather than as a reduction to the carrying value of the securities. In May 2019, the FASB issued ASU 2019-05, Targeted Transition Relief , which provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. This update is effective for us beginning in the first quarter of fiscal year 2021. We are evaluating the impact of this new standard but do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This update eliminates, adds, and modifies certain fair value measurement disclosure requirements. This update is effective for us beginning in the first quarter of fiscal 2021. We do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update requires a customer in a cloud computing service arrangement to follow the internal-use software guidance in order to determine which implementation costs to defer and recognize as an asset. This update is effective for us beginning in the first quarter of fiscal year 2021. We do not expect the adoption to have a material impact on our Condensed Consolidated Financial Statements. In December 2019, the FASB issued ASC 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This update is effective for us beginning in the first quarter of fiscal year 2022. Early adoption is permitted. We are currently evaluating the impact of this new standard on our Condensed Consolidated Financial Statements and related disclosures. |
Description Of Business And B_3
Description Of Business And Basis Of Presentation (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | BALANCE SHEETS Balance at March 31, 2019 Adjustments due to New Lease Standard Adoption Balance at April 1, 2019 Assets Other current assets $ 313 $ (6 ) $ 307 Other assets 114 215 329 Liabilities Accrued and other current liabilities $ 1,052 $ 47 $ 1,099 Other liabilities 132 162 294 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 85 $ 85 $ — $ — Cash equivalents Money market funds 1,352 1,352 — — Cash equivalents Available-for-sale securities: Corporate bonds 837 — 837 — Short-term investments and cash equivalents U.S. Treasury securities 459 459 — — Short-term investments and cash equivalents U.S. agency securities 8 — 8 — Short-term investments Commercial paper 438 — 438 — Short-term investments and cash equivalents Foreign government securities 48 — 48 Short-term investments Asset-backed securities 281 — 281 — Short-term investments Certificates of deposit 43 — 43 — Short-term investments Foreign currency derivatives 22 — 22 — Other current assets and other assets Deferred compensation plan assets (a) 14 14 — — Other assets Total assets at fair value $ 3,587 $ 1,910 $ 1,677 $ — Liabilities Contingent consideration (b) $ 35 $ 35 $ — $ — Accrued and other current liabilities Foreign currency derivatives 9 — 9 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 14 14 — — Other liabilities Total liabilities at fair value $ 58 $ 49 $ 9 $ — | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Financial Instruments Significant Other Observable Inputs Significant Unobservable Inputs As of March 31, 2019 (Level 1) (Level 2) (Level 3) Balance Sheet Classification Assets Bank and time deposits $ 23 $ 23 $ — $ — Cash equivalents Money market funds 2,704 2,704 — — Cash equivalents Available-for-sale securities: Corporate bonds 327 — 327 — Short-term investments and cash equivalents U.S. Treasury securities 294 294 — — Short-term investments and cash equivalents U.S. agency securities 57 — 57 — Short-term investments and cash equivalents Commercial paper 233 — 233 — Short-term investments and cash equivalents Foreign government securities 58 — 58 — Short-term investments and cash equivalents Asset-backed securities 55 — 55 — Short-term investments and cash equivalents Certificates of deposit 2 — 2 — Short-term investments and cash equivalents Foreign currency derivatives 33 — 33 — Other current assets and other assets Deferred compensation plan assets (a) 11 11 — — Other assets Total assets at fair value $ 3,797 $ 3,032 $ 765 $ — Liabilities Contingent consideration (b) $ 136 $ — $ — $ 136 Accrued and other current liabilities Foreign currency derivatives 16 — 16 — Accrued and other current liabilities and other liabilities Deferred compensation plan liabilities (a) 12 12 — — Other liabilities Total liabilities at fair value $ 164 $ 12 $ 16 $ 136 (a) The Deferred Compensation Plan assets consist of various mutual funds. See Note 15 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019 , for additional information regarding our Deferred Compensation Plan. (b) The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with our acquisition of Respawn Entertainment, LLC (“Respawn”) that is contingent upon the achievement of certain performance milestones. As of March 31, 2019, we estimated fair value using a probability-weighted income approach combined with a real options methodology, and applied a discount rate that appropriately captures the risk associated with the obligation, ranging from 2.9 percent to 3.1 percent . During the nine months ended December 31, 2019 , there were no material changes to the estimated fair value of the contingent consideration liability other than $105 million in payments for performance milestones achieved. As of December 31, 2019 , all remaining performance milestones have been achieved and the $35 million remaining payment amount was fixed and was paid in the fourth quarter of fiscal year 2020. See Note 7 in our Annual Report on Form 10-K for the fiscal year ended March 31, 2019 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Fair Value Of Short-Term Investments | Short-term investments consisted of the following as of December 31, 2019 and March 31, 2019 (in millions): As of December 31, 2019 As of March 31, 2019 Cost or Amortized Cost Gross Unrealized Fair Value Cost or Amortized Cost Gross Unrealized Fair Value Gains Losses Gains Losses Corporate bonds $ 811 $ 1 $ — $ 812 $ 325 $ — $ (1 ) $ 324 U.S. Treasury securities 413 — — 413 153 — — 153 U.S. agency securities 8 — — 8 44 — — 44 Commercial paper 393 1 — 394 112 — — 112 Foreign government securities 48 — — 48 50 — — 50 Asset-backed securities 281 — — 281 53 — — 53 Certificates of deposit 43 — — 43 1 — — 1 Short-term investments $ 1,997 $ 2 $ — $ 1,999 $ 738 $ — $ (1 ) $ 737 |
Fair Value Of Short-Term Investments By Stated Maturity Date Schedule | The following table summarizes the amortized cost and fair value of our short-term investments, classified by stated maturity as of December 31, 2019 and March 31, 2019 (in millions): As of December 31, 2019 As of March 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Short-term investments Due within 1 year $ 1,573 $ 1,574 $ 449 $ 448 Due 1 year through 5 years 412 413 287 287 Due after 5 years 12 12 2 2 Short-term investments $ 1,997 $ 1,999 $ 738 $ 737 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | Total gross notional amounts and fair values for currency derivatives with cash flow hedge accounting designation are as follows (in millions): As of December 31, 2019 As of March 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 254 $ 1 $ 2 $ 295 $ — $ 10 Forward contracts to sell $ 938 $ 18 $ 4 $ 1,355 $ 31 $ 4 Total gross notional amounts and fair values for currency derivatives that are not designated as hedging instruments are accounted for as follows (in millions): As of December 31, 2019 As of March 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Forward contracts to purchase $ 624 $ 1 $ 1 $ 449 $ — $ 2 Forward contracts to sell $ 936 $ 2 $ 2 $ 394 $ 2 $ — |
Derivative Instruments, Gain (Loss) | The effect of foreign currency forward contracts not designated as hedging instruments in our Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2019 and 2018 was as follows (in millions): Amount of Gain (Loss) Recognized in the Statements of Operations Three Months Ended Nine Months Ended 2019 2018 2019 2018 Interest and other income (expense), net Total amounts presented in our Condensed Consolidated Statements of Operations in which the effects of balance sheet hedges are recorded $ 13 $ 23 $ 50 $ 60 Gain (losses) on foreign currency forward contracts not designated as hedging instruments $ (1 ) $ 21 $ (4 ) $ 25 Amount of Gain (Loss) Recognized in the Statements of Operations Three Months Ended December 31, Nine Months Ended December 31, 2019 2018 2019 2018 Net revenue Research and development Net revenue Research and development Net revenue Research and development Net revenue Research and development Total amounts presented in our Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 1,593 $ 389 $ 1,289 $ 334 $ 4,150 $ 1,157 $ 3,712 $ 1,035 Gains (losses) on foreign currency forward contracts designated as cash flow hedges $ 18 $ (1 ) $ 13 $ (2 ) $ 59 $ (8 ) $ 1 $ (6 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in accumulated other comprehensive income (loss) by component, net of tax, for the three months ended December 31, 2019 and 2018 are as follows (in millions): Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of September 30, 2019 $ 2 $ 47 $ (59 ) $ (10 ) Other comprehensive income (loss) before reclassifications (1 ) (12 ) 7 (6 ) Amounts reclassified from accumulated other comprehensive income (loss) — (17 ) — (17 ) Total other comprehensive income (loss), net of tax (1 ) (29 ) 7 (23 ) Balances as of December 31, 2019 $ 1 $ 18 $ (52 ) $ (33 ) Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of September 30, 2018 $ (7 ) $ 30 $ (42 ) $ (19 ) Other comprehensive income (loss) before reclassifications 1 22 (11 ) 12 Amounts reclassified from accumulated other comprehensive income (loss) 1 (11 ) — (10 ) Total other comprehensive income (loss), net of tax 2 11 (11 ) 2 Balances as of December 31, 2018 $ (5 ) $ 41 $ (53 ) $ (17 ) The changes in accumulated other comprehensive income (loss) by component, net of tax, for the nine months ended December 31, 2019 and 2018 are as follows (in millions): Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2019 $ (1 ) $ 22 $ (51 ) $ (30 ) Other comprehensive income (loss) before reclassifications 3 47 (1 ) 49 Amounts reclassified from accumulated other comprehensive income (loss) (1 ) (51 ) — (52 ) Total other comprehensive income (loss), net of tax 2 (4 ) (1 ) (3 ) Balances as of December 31, 2019 $ 1 $ 18 $ (52 ) $ (33 ) Unrealized Net Gains (Losses) on Available-for-Sale Securities Unrealized Net Gains (Losses) on Derivative Instruments Foreign Currency Translation Adjustments Total Balances as of March 31, 2018 $ (8 ) $ (89 ) $ (30 ) $ (127 ) Cumulative-effect adjustment from the adoption of ASC 606 — 22 — 22 Cumulative-effect adjustment from the adoption of ASU 2018-02 — 1 — 1 Balances as of April 1, 2018 (8 ) (66 ) (30 ) (104 ) Other comprehensive income (loss) before reclassifications 2 102 (23 ) 81 Amounts reclassified from accumulated other comprehensive income (loss) 1 5 — 6 Total other comprehensive income (loss), net of tax 3 107 (23 ) 87 Balances as of December 31, 2018 $ (5 ) $ 41 $ (53 ) $ (17 ) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three and nine months ended December 31, 2019 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended Nine Months Ended (Gains) losses on foreign currency forward contracts designated as cash flow hedges Net revenue $ (18 ) $ (59 ) Research and development 1 8 Total, net of tax $ (17 ) $ (51 ) The effects on net income of amounts reclassified from accumulated other comprehensive income (loss) for the three and nine months ended December 31, 2018 were as follows (in millions): Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Statement of Operations Classification Three Months Ended Nine Months Ended (Gains) losses on foreign currency forward contracts designated as cash flow hedges Net revenue $ (13 ) $ (1 ) Research and development 2 6 Total, net of tax $ (11 ) $ 5 |
Goodwill And Acquisition-Rela_2
Goodwill And Acquisition-Related Intangibles, Net (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Changes In The Carrying Amount Of Goodwill | The changes in the carrying amount of goodwill for the nine months ended December 31, 2019 are as follows (in millions): As of Activity Effects of Foreign Currency Translation As of Goodwill $ 2,260 $ — $ — $ 2,260 Accumulated impairment (368 ) — — (368 ) Total $ 1,892 $ — $ — $ 1,892 |
Schedule Of Acquisition-Related Intangibles | Acquisition-related intangibles consisted of the following (in millions): As of December 31, 2019 As of March 31, 2019 Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Gross Carrying Amount Accumulated Amortization Acquisition- Related Intangibles, Net Developed and core technology $ 474 $ (444 ) $ 30 $ 469 $ (427 ) $ 42 Trade names and trademarks 161 (129 ) 32 161 (121 ) 40 Registered user base and other intangibles 5 (5 ) — 5 (5 ) — Carrier contracts and related 85 (85 ) — 85 (85 ) — In-process research and development — — — 5 — 5 Total $ 725 $ (663 ) $ 62 $ 725 $ (638 ) $ 87 |
Schedule Of Amoritization Of Intangibles | Amortization of intangibles for the three and nine months ended December 31, 2019 and 2018 are classified in the Condensed Consolidated Statements of Operations as follows (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of product $ 3 $ 1 $ 3 $ 3 Cost of service and other 2 — 6 — Operating expenses 5 6 16 18 Total $ 10 $ 7 $ 25 $ 21 |
Schedule Of Future Amortization Of Acquisition-Related Intangibles | As of December 31, 2019 , future amortization of finite-lived acquisition-related intangibles that will be recorded in the Condensed Consolidated Statements of Operations is estimated as follows (in millions): Fiscal Year Ending March 31, 2020 (remaining three months) $ 10 2021 22 2022 22 2023 8 2024 and thereafter — Total $ 62 |
Royalties And Licenses (Tables)
Royalties And Licenses (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Royalties And Licenses [Abstract] | |
Schedule Of Royalty-Related Assets | The current and long-term portions of prepaid royalties and minimum guaranteed royalty-related assets, included in other current assets and other assets, consisted of (in millions): As of As of Other current assets $ 36 $ 53 Other assets 26 30 Royalty-related assets $ 62 $ 83 |
Schedule Of Royalty-Related Liabilities | The current and long-term portions of accrued royalties, included in accrued and other current liabilities and other liabilities, consisted of (in millions): As of As of Accrued royalties $ 244 $ 144 Other liabilities 32 51 Royalty-related liabilities $ 276 $ 195 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Property And Equipment, Net Schedule | Property and equipment, net, as of December 31, 2019 and March 31, 2019 consisted of (in millions): As of As of Computer, equipment and software $ 753 $ 710 Buildings 348 343 Leasehold improvements 164 139 Equipment, furniture and fixtures, and other 85 80 Land 66 66 Construction in progress 3 21 1,419 1,359 Less: accumulated depreciation (980 ) (911 ) Property and equipment, net $ 439 $ 448 |
Accrued And Other Current Liabilities Schedule | Accrued and other current liabilities as of December 31, 2019 and March 31, 2019 consisted of (in millions): As of As of Other accrued expenses $ 294 $ 290 Accrued compensation and benefits 280 238 Accrued royalties 244 144 Sales return and price protection reserves 174 150 Contingent consideration 35 136 Deferred net revenue (other) 102 94 Operating lease liabilities (See Note 11 ) 75 — Accrued and other current liabilities $ 1,204 $ 1,052 |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | Deferred net revenue as of December 31, 2019 and March 31, 2019 consisted of (in millions): As of As of Deferred net revenue (online-enabled games) $ 1,073 $ 1,100 Deferred net revenue (other) 102 94 Deferred net revenue (noncurrent) 13 23 Total Deferred net revenue $ 1,188 $ 1,217 |
Financing Arrangement (Tables)
Financing Arrangement (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Debt Instruments [Abstract] | |
Schedule of Carrying Values Of Liability and Equity Components of Senior Notes [Table Text Block] | The carrying and fair values of the Senior Notes are as follows (in millions): As of As of Senior Notes: 3.70% Senior Notes due 2021 $ 600 $ 600 4.80% Senior Notes due 2026 400 400 Total principal amount $ 1,000 $ 1,000 Unaccreted discount (1 ) (1 ) Unamortized debt issuance costs (4 ) (5 ) Net carrying value of Senior Notes $ 995 $ 994 Fair value of Senior Notes (Level 2) $ 1,062 $ 1,039 |
Schedule Of Interest Expense | The following table summarizes our interest expense recognized for the three and nine months ended December 31, 2019 and 2018 that is included in interest and other income (expense), net on our Condensed Consolidated Statements of Operations (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Amortization of debt issuance costs $ — $ — $ (1 ) $ (1 ) Coupon interest expense (10 ) (10 ) (31 ) (31 ) Other interest expense — (1 ) — (1 ) Total interest expense $ (10 ) $ (11 ) $ (32 ) $ (33 ) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense are as follows (in millions): Three Months Ended Nine Months Ended Operating lease costs $ 18 $ 52 Variable lease costs 9 29 Short-term lease costs 2 11 Total lease expense $ 29 $ 92 Supplemental cash and noncash information related to our operating leases are as follows (in millions): Nine Months Ended Cash paid for amounts included in the measurement of lease liability $ 47 ROU assets obtained in exchange for new lease obligations $ 49 Weighted average remaining lease term and discount rate are as follows: At December 31, 2019 Lease term 4.9 years Discount rate 3.4 % |
AssetsandLiabilitiesLesseeTableTextBlock [Table Text Block] | Operating lease ROU assets and liabilities recorded on our Condensed Consolidated Balance Sheet as of April 1, 2019 and December 31, 2019 , are as follows (in millions): Balance at April 1, 2019 Balance as of December 31, 2019 Balance Sheet Classification Operating lease ROU assets $ 215 $ 206 Other assets Operating lease liabilities $ 50 $ 75 Accrued and other current liabilities Noncurrent operating lease liabilities 197 168 Other liabilities Total operating lease liabilities $ 247 $ 243 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under operating leases as of December 31, 2019 were as follows (in millions): Fiscal Years Ending March 31, 2020 (remaining three months) $ 22 2021 74 2022 59 2023 35 2024 28 2025 19 Thereafter 26 Total future lease payments 263 Less imputed interest (20 ) Total operating lease liabilities $ 243 Future minimum lease payments as of March 31, 2019, prior to our adoption of the New Lease Standard, were as follows (in millions): Fiscal Years Ending March 31, 2020 $ 52 2021 54 2022 44 2023 36 2024 28 Thereafter 50 Total future lease payments $ 264 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Contractual Obligations | The following table summarizes our minimum contractual obligations as of December 31, 2019 (in millions): Fiscal Years Ending March 31, 2020 (Remaining Total three mos.) 2021 2022 2023 2024 2025 Thereafter Unrecognized commitments Developer/licensor commitments $ 796 $ 27 $ 249 $ 252 $ 108 $ 93 $ 63 $ 4 Marketing commitments 315 16 101 88 42 40 28 — Senior Notes interest 145 7 41 20 20 19 19 19 Operating lease imputed interest 20 2 6 4 3 3 1 1 Operating leases not yet commenced 177 — — — 8 13 13 143 Other purchase obligations 105 6 44 43 8 2 2 — Total unrecognized commitments 1,558 58 441 407 189 170 126 167 Recognized commitments Senior Notes principal and interest 1,014 14 600 — — — — 400 Operating leases 243 20 68 55 32 25 18 25 Transition and other taxes 74 6 23 24 3 5 5 8 Licensing commitments 59 6 26 27 — — — — Total recognized commitments 1,390 46 717 106 35 30 23 433 Total commitments $ 2,948 $ 104 $ 1,158 $ 513 $ 224 $ 200 $ 149 $ 600 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of assumptions used in the Black-Scholes valuation model | Three Months Ended Nine Months Ended Risk-free interest rate 1.6 % 1.6 - 1.8% Expected volatility 14 - 65% 14 - 65% Weighted-average volatility 30 % 29 % Expected dividends None None |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The assumptions used in the Monte-Carlo simulation model to value our market-based restricted stock units were as follows: Three Months Ended Nine Months Ended Risk-free interest rate 1.6 % 1.6 - 1.8% Expected volatility 14 - 65% 14 - 65% Weighted-average volatility 30 % 29 % Expected dividends None None |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | The following table summarizes stock-based compensation expense resulting from stock options, restricted stock units, market-based restricted stock units, performance-based restricted stock units, and the ESPP purchase rights included in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Cost of revenue $ 1 $ 1 $ 3 $ 3 Research and development 60 49 170 135 Marketing and sales 10 8 27 24 General and administrative 20 17 56 49 Stock-based compensation expense $ 91 $ 75 $ 256 $ 211 |
Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | The following table summarizes our stock option activity for the nine months ended December 31, 2019 : Options (in thousands) Weighted- Average Exercise Prices Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) Outstanding as of March 31, 2019 1,375 $ 30.63 Granted 4 94.92 Exercised (196 ) 30.49 Forfeited, cancelled or expired — — Outstanding as of December 31, 2019 1,183 $ 30.86 4.14 $ 92 Vested and expected to vest 1,183 $ 30.86 4.14 $ 92 Exercisable as of December 31, 2019 1,183 $ 30.86 4.14 $ 92 |
Restricted Stock Rights [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | The following table summarizes our restricted stock unit activity for the nine months ended December 31, 2019 : Restricted Stock Rights (in thousands) Weighted- Average Grant Date Fair Values Outstanding as of March 31, 2019 4,960 $ 111.03 Granted 4,021 93.07 Vested (2,279 ) 108.74 Forfeited or cancelled (425 ) 107.29 Outstanding as of December 31, 2019 6,277 $ 100.61 |
Performance Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | The following table summarizes our performance-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the nine months ended December 31, 2019 : Performance- Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2019 579 $ 110.51 Granted — — Forfeited or cancelled — — Outstanding as of December 31, 2019 579 $ 110.51 |
Market-Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | The following table summarizes our market-based restricted stock unit activity, presented with the maximum number of shares that could potentially vest, for the nine months ended December 31, 2019 : Market-Based Restricted Stock Units (in thousands) Weighted- Average Grant Date Fair Value Outstanding as of March 31, 2019 958 $ 155.64 Granted 1,313 109.04 Vested (93 ) 109.05 Forfeited or cancelled (260 ) 137.05 Outstanding as of December 31, 2019 1,918 $ 128.51 |
Repurchase Program, Total [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure Of Stock-Based Compensation Arrangements By Stock-Based Payment Award | The following table summarizes total shares repurchased during the three and nine months ended December 31, 2019 and 2018 : May 2017 Program May 2018 Program Total (in millions) Shares Amount Shares Amount Shares Amount Three months ended December 31, 2019 — $ — 3.1 $ 305 3.1 $ 305 Nine months ended December 31, 2019 — $ — 9.6 916 9.6 $ 916 Three months ended December 31, 2018 — $ — 3.2 $ 292 3.2 $ 292 Nine months ended December 31, 2018 0.6 $ 76 7.2 815 7.8 $ 891 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |
Computation Of Basic Earnings (Loss) And Diluted Earnings (Loss) Per Share | The following table summarizes the computations of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS is computed as net income divided by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation plans including stock options, restricted stock, restricted stock units, ESPP purchase rights, warrants, and other convertible securities using the treasury stock method. Three Months Ended Nine Months Ended (In millions, except per share amounts) 2019 2018 2019 2018 Net income $ 346 $ 262 $ 2,621 $ 810 Shares used to compute earnings per share: Weighted-average common stock outstanding — basic 292 302 294 304 Dilutive potential common shares related to stock award plans and from assumed exercise of stock options 2 2 2 3 Weighted-average common stock outstanding — diluted 294 304 296 307 Earnings per share: Basic $ 1.18 $ 0.87 $ 8.91 $ 2.66 Diluted $ 1.18 $ 0.86 $ 8.85 $ 2.64 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Net Revenue By Revenue Composition | Information about our total net revenue by composition and by platform for the three and nine months ended December 31, 2019 and 2018 is presented below (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net revenue by composition Full game downloads $ 286 $ 247 $ 598 $ 511 Live services 677 480 1,981 1,502 Mobile 161 181 516 632 Total Digital 1,124 908 3,095 2,645 Packaged goods and other 469 381 1,055 1,067 Net revenue $ 1,593 $ 1,289 $ 4,150 $ 3,712 |
Net Revenue by Platform | Other revenue includes our non-software licensing revenue. Three Months Ended Nine Months Ended 2019 2018 2019 2018 Platform net revenue Console $ 1,163 $ 885 $ 2,846 $ 2,507 PC / Browser 257 217 748 563 Mobile 169 181 542 634 Other 4 6 14 8 Net revenue $ 1,593 $ 1,289 $ 4,150 $ 3,712 |
Net Revenue By Geographic Area | Information about our operations in North America and internationally for the three and nine months ended December 31, 2019 and 2018 is presented below (in millions): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net revenue from unaffiliated customers North America $ 690 $ 519 $ 1,711 $ 1,436 International 903 770 2,439 2,276 Net revenue $ 1,593 $ 1,289 $ 4,150 $ 3,712 |
Description Of Business And B_4
Description Of Business And Basis Of Presentation Fiscal Period (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fiscal Period | ||||
Current and Prior Years Fiscal Period (in weeks) | 52 | 52 | ||
Current and Prior Years Fiscal Quarter Period (in weeks) | 13 | 13 | 26 | 26 |
Minimum | ||||
Fiscal Period | ||||
Fiscal Year | 52 | |||
Maximum | ||||
Fiscal Period | ||||
Fiscal Year | 53 |
Description Of Business And B_5
Description Of Business And Basis Of Presentation Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Apr. 01, 2019 | Mar. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 206 | $ 215 | |
Operating Lease, Liability, Current | 75 | 50 | |
Operating Lease, Liability, Noncurrent | $ 168 | $ 197 | |
Prepaid Rent | $ 6 | ||
Deferred Rent Credit | $ 38 |
Description Of Business And B_6
Description Of Business And Basis Of Presentation New Lease Standard Balance Sheet at Period Start (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | [1] |
Item Effected [Line Items] | ||||
Other current assets | $ 229 | $ 307 | $ 313 | |
Other assets | 311 | 329 | 114 | |
Accrued Liabilities, Current | 1,204 | 1,099 | 1,052 | |
Other liabilities | $ 237 | 294 | $ 132 | |
Balance Sheet Impact at Period End [Member] | ||||
Item Effected [Line Items] | ||||
Other current assets | (6) | |||
Other assets | 215 | |||
Accrued Liabilities, Current | 47 | |||
Other liabilities | $ 162 | |||
[1] | Derived from audited Consolidated Financial Statements. |
(Fair Value Of Assets And Liabi
(Fair Value Of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Accrued Liabilities, Fair Value Disclosure | $ 35 | $ 136 |
Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total assets at fair value | 1,910 | 3,032 |
Total liabilities at fair value | 49 | 12 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total assets at fair value | 1,677 | 765 |
Total liabilities at fair value | 9 | 16 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total assets at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 136 |
Short-term investments | Significant Other Observable Inputs (Level 2) | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 8 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | Debt Security, Government, Non-US [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 48 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Asset-backed securities | 281 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 43 | |
Short-Term Investments And Cash Equivalents | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 459 | 294 |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 837 | 327 |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 57 | |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 438 | 233 |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Debt Security, Government, Non-US [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 58 | |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Asset-backed securities | 55 | |
Short-Term Investments And Cash Equivalents | Significant Other Observable Inputs (Level 2) | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 2 | |
Cash Equivalents | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Bank Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Cash equivalents | 85 | 23 |
Cash Equivalents | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Cash equivalents | 1,352 | 2,704 |
Other Current Assets and Other Assets [Domain] | Significant Other Observable Inputs (Level 2) | Foreign currency derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Foreign currency derivatives, assets | 22 | 33 |
Other assets | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Deferred compensation plan assets | 14 | 11 |
Accrued And Other Current Liabilities [Member] | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Contingent consideration | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Accrued Liabilities, Fair Value Disclosure | 35 | |
Accrued And Other Current Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent consideration | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Accrued Liabilities, Fair Value Disclosure | 136 | |
Accrued and Other Current Liabilities and Other Liabilities | Significant Other Observable Inputs (Level 2) | Foreign currency derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Foreign currency derivatives, liabilities | 9 | 16 |
Other liabilities | Quoted Prices In Active Markets For Identical Financial Instruments (Level 1) | Deferred Compensation Plan Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Deferred compensation plan assets | 14 | 12 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total assets at fair value | 3,587 | 3,797 |
Total liabilities at fair value | 58 | 164 |
Fair Value | Short-term investments | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 8 | |
Fair Value | Short-term investments | Debt Security, Government, Non-US [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 48 | |
Fair Value | Short-term investments | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Asset-backed securities | 281 | |
Fair Value | Short-term investments | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 43 | |
Fair Value | Short-Term Investments And Cash Equivalents | Corporate bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 837 | 327 |
Fair Value | Short-Term Investments And Cash Equivalents | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 459 | 294 |
Fair Value | Short-Term Investments And Cash Equivalents | U.S. agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 57 | |
Fair Value | Short-Term Investments And Cash Equivalents | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 438 | 233 |
Fair Value | Short-Term Investments And Cash Equivalents | Debt Security, Government, Non-US [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 58 | |
Fair Value | Short-Term Investments And Cash Equivalents | Asset-backed Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Asset-backed securities | 55 | |
Fair Value | Short-Term Investments And Cash Equivalents | Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Available-for-sale of securities | 2 | |
Fair Value | Cash Equivalents | Bank Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Cash equivalents | 85 | 23 |
Fair Value | Cash Equivalents | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Cash equivalents | 1,352 | 2,704 |
Fair Value | Other Current Assets and Other Assets [Domain] | Foreign currency derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Foreign currency derivatives, assets | 22 | 33 |
Fair Value | Other assets | Deferred compensation plan assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Deferred compensation plan assets | 14 | 11 |
Fair Value | Accrued And Other Current Liabilities [Member] | Contingent consideration | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Accrued Liabilities, Fair Value Disclosure | 35 | 136 |
Fair Value | Accrued and Other Current Liabilities and Other Liabilities | Foreign currency derivatives | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Foreign currency derivatives, liabilities | 9 | 16 |
Fair Value | Other liabilities | Deferred Compensation Plan Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Fair value, Deferred compensation plan assets | $ 14 | $ 12 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Narrative) (Details) $ in Millions | 9 Months Ended | |
Dec. 31, 2019USD ($) | Mar. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Payments of Acquisition Contingent Consideration | $ (105) | |
Business Combination, Contingent Consideration, Liability, Current | $ 35 | |
Minimum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.029 | |
Maximum | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Business Combination, Contingent Consideration, Liability, Measurement Input | 0.031 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 |
Financial Instruments [Abstract] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 3,603 | $ 4,708 | $ 3,887 | $ 4,258 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value Of Short-Term Investments) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | ||
Financial Instruments | |||
Fair Value | $ 1,999 | $ 737 | [1] |
Short-term investments | |||
Financial Instruments | |||
Cost or Amortized Cost | 1,997 | 738 | |
Gross Unrealized Gains | 2 | 0 | |
Gross Unrealized Losses | 0 | (1) | |
Fair Value | 1,999 | 737 | |
Short-term investments | Corporate bonds | |||
Financial Instruments | |||
Cost or Amortized Cost | 811 | 325 | |
Gross Unrealized Gains | 1 | 0 | |
Gross Unrealized Losses | 0 | (1) | |
Fair Value | 812 | 324 | |
Short-term investments | U.S. Treasury securities | |||
Financial Instruments | |||
Cost or Amortized Cost | 413 | 153 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 413 | 153 | |
Short-term investments | U.S. agency securities | |||
Financial Instruments | |||
Cost or Amortized Cost | 8 | 44 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 8 | 44 | |
Short-term investments | Commercial paper | |||
Financial Instruments | |||
Cost or Amortized Cost | 393 | 112 | |
Gross Unrealized Gains | 1 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 394 | 112 | |
Short-term investments | Debt Security, Government, Non-US [Member] | |||
Financial Instruments | |||
Cost or Amortized Cost | 48 | 50 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 48 | 50 | |
Short-term investments | Asset-backed Securities [Member] | |||
Financial Instruments | |||
Cost or Amortized Cost | 281 | 53 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 281 | 53 | |
Short-term investments | Certificates of Deposit [Member] | |||
Financial Instruments | |||
Cost or Amortized Cost | 43 | 1 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | $ 43 | $ 1 | |
[1] | Derived from audited Consolidated Financial Statements. |
Financial Instruments (Fair V_2
Financial Instruments (Fair Value Of Short-Term Investments By Stated Maturity Date Schedule) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 | |
Financial Instruments | |||
Short-term investments, Fair Value | $ 1,999 | $ 737 | [1] |
Short-term investments | |||
Financial Instruments | |||
Due in 1 year or less, Amortized Cost | 1,573 | 449 | |
Due in 1 year or less, Fair Value | 1,574 | 448 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost | 412 | 287 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value | 413 | 287 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost | 12 | 2 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value | 12 | 2 | |
Short-term investments, Amortized Cost | 1,997 | 738 | |
Short-term investments, Fair Value | $ 1,999 | $ 737 | |
[1] | Derived from audited Consolidated Financial Statements. |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative | |||
Gain from Components Excluded from Assessment of Cash Flow Hedge Effectiveness | $ 6 | $ 20 | |
Designated as Hedging Instrument [Member] | |||
Derivative | |||
Maximum Remaining Maturity of Foreign Currency Derivatives | 18 months | ||
Not Designated as Hedging Instrument [Member] | |||
Derivative | |||
Maximum Remaining Maturity of Foreign Currency Derivatives | 3 months |
Derivative Financial Instrume_4
Derivative Financial Instruments Gross Notional Amounts and Fair Values for Currency Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of foreign currency contracts outstanding, Assets | $ 1 | $ 0 |
Fair value of foreign currency contracts outstanding, Liabilities | 2 | 10 |
Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Fair value of foreign currency contracts outstanding, Assets | 18 | 31 |
Fair value of foreign currency contracts outstanding, Liabilities | 4 | 4 |
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 254 | 295 |
Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 938 | 1,355 |
United States Dollar [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 624 | 449 |
United States Dollar [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, Notional amount | 936 | 394 |
Balance Sheet Hedging [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to purchase [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Current | 1 | 0 |
Derivative Liability, Current | 1 | 2 |
Balance Sheet Hedging [Member] | Not Designated as Hedging Instrument [Member] | Foreign exchange forward contracts to sell [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Asset, Current | 2 | 2 |
Derivative Liability, Current | $ 2 | $ 0 |
Location of Income (Expense) Re
Location of Income (Expense) Recognized in Income on Derivative, Non-Designated Hedging Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative | ||||
Net revenue | $ 1,593 | $ 1,289 | $ 4,150 | $ 3,712 |
Research and development | 389 | 334 | 1,157 | 1,035 |
Interest and other income (expense), net | 13 | 23 | 50 | 60 |
Sales Revenue, Net | ||||
Derivative | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 18 | 13 | 59 | 1 |
Research And Development [Member] | ||||
Derivative | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (1) | (2) | (8) | (6) |
Interest and Other Income (Expense), net | ||||
Derivative | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (1) | $ 21 | $ (4) | $ 25 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | $ (127) | $ (10) | $ (19) | $ (30) | [1] | $ (127) |
Other comprehensive income (loss) before reclassifications | (6) | 12 | 49 | 81 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (17) | (10) | (52) | 6 | ||
Total other comprehensive income (loss), net of tax | (23) | 2 | (3) | 87 | ||
Ending balance | (104) | (33) | (17) | (33) | (17) | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (8) | 2 | (7) | (1) | (8) | |
Other comprehensive income (loss) before reclassifications | (1) | 1 | 3 | 2 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 1 | (1) | 1 | ||
Total other comprehensive income (loss), net of tax | (1) | 2 | 2 | 3 | ||
Ending balance | (8) | 1 | (5) | 1 | (5) | |
Unrealized Gains (Losses) on Derivative Instruments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (89) | 47 | 30 | 22 | (89) | |
Other comprehensive income (loss) before reclassifications | (12) | 22 | 47 | 102 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (17) | (11) | (51) | 5 | ||
Total other comprehensive income (loss), net of tax | (29) | 11 | (4) | 107 | ||
Ending balance | (66) | 18 | 41 | 18 | 41 | |
Foreign Currency Translation Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (30) | (59) | (42) | (51) | (30) | |
Other comprehensive income (loss) before reclassifications | 7 | (11) | (1) | (23) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 7 | (11) | (1) | (23) | ||
Ending balance | (30) | $ (52) | $ (53) | $ (52) | $ (53) | |
Accounting Standards Update 2014-09 [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other comprehensive income (loss) before reclassifications | 22 | |||||
Accounting Standards Update 2014-09 [Member] | Unrealized Gains (Losses) on Derivative Instruments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other comprehensive income (loss) before reclassifications | 22 | |||||
ASU 2018-02 [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | |||||
ASU 2018-02 [Member] | Unrealized Gains (Losses) on Derivative Instruments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 1 | |||||
[1] | Derived from audited Consolidated Financial Statements. |
Effects on net income of amount
Effects on net income of amounts reclassified from accumulated other comprehensive income (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (17) | $ (10) | $ (52) | $ 6 |
Unrealized Gains (Losses) on Derivative Instruments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (17) | (11) | (51) | 5 |
Unrealized Gains (Losses) on Derivative Instruments [Member] | Sales Revenue, Net | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | (18) | (13) | (59) | (1) |
Unrealized Gains (Losses) on Derivative Instruments [Member] | Research And Development [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 1 | $ 2 | $ 8 | $ 6 |
Goodwill And Acquisition-Rela_3
Goodwill And Acquisition-Related Intangibles, Net (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Minimum | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Maximum | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Weighted Average | ||
Finite-Lived Intangible Assets | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years 6 months | 3 years 2 months 12 days |
Goodwill And Acquisition-Rela_4
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Changes In The Carrying Amount Of Goodwill) (Details) $ in Millions | 9 Months Ended | |
Dec. 31, 2019USD ($) | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross, Beginning balance | $ 2,260 | |
Accumulated impairment, beginning balance | (368) | |
Goodwill, Net, Beginning balance | 1,892 | [1] |
Goodwill acquired | 0 | |
Effects of foreign currency translation | 0 | |
Goodwill, Gross, Ending balance | 2,260 | |
Accumulated impairment, ending balance | (368) | |
Goodwill, Net, Ending balance | $ 1,892 | |
[1] | Derived from audited Consolidated Financial Statements. |
Goodwill And Acquisition-Rela_5
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 | |
Finite-Lived Intangible Assets | |||
Gross carrying amount | $ 725 | $ 725 | |
Accumulated amortization | (663) | (638) | |
Acquisition-related intangibles, net | 62 | 87 | [1] |
Developed And Core Technology | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 474 | 469 | |
Accumulated amortization | (444) | (427) | |
Acquisition-related intangibles, net | 30 | 42 | |
Trade Names And Trademarks | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 161 | 161 | |
Accumulated amortization | (129) | (121) | |
Acquisition-related intangibles, net | 32 | 40 | |
Registered User Base And Other Intangibles | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 5 | 5 | |
Accumulated amortization | (5) | (5) | |
Acquisition-related intangibles, net | 0 | 0 | |
Carrier Contracts And Related | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 85 | 85 | |
Accumulated amortization | (85) | (85) | |
Acquisition-related intangibles, net | 0 | 0 | |
In Process Research and Development [Member] | |||
Finite-Lived Intangible Assets | |||
Gross carrying amount | 0 | 5 | |
Accumulated amortization | 0 | 0 | |
Acquisition-related intangibles, net | $ 0 | $ 5 | |
[1] | Derived from audited Consolidated Financial Statements. |
Goodwill And Acquisition-Rela_6
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Amortization Of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 5 | $ 6 | $ 16 | $ 18 |
Cost of service and other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 2 | 0 | 6 | 0 |
Cost of product | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 3 | 1 | 3 | 3 |
Operating expenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | 5 | 6 | 16 | 18 |
Total amortization | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangibles | $ 10 | $ 7 | $ 25 | $ 21 |
Goodwill And Acquisition-Rela_7
Goodwill And Acquisition-Related Intangibles, Net (Schedule Of Future Amortization Of Acquisition-Related Intangibles) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 | [1] |
Finite-Lived Intangible Assets | |||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 10 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 22 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 22 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 8 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0 | ||
Finite-Lived Intangible Assets, Net | 62 | $ 87 | |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year through after Year Five [Member] | |||
Finite-Lived Intangible Assets | |||
Finite-Lived Intangible Assets, Net | $ 62 | ||
[1] | Derived from audited Consolidated Financial Statements. |
Royalties And Licenses (Schedul
Royalties And Licenses (Schedule Of Royalty-Related Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Royalties and Licenses | ||
Royalty-related assets | $ 62 | $ 83 |
Other Current Assets | ||
Royalties and Licenses | ||
Royalty-related assets | 36 | 53 |
Other assets | ||
Royalties and Licenses | ||
Royalty-related assets | $ 26 | $ 30 |
Royalties And Licenses (Sched_2
Royalties And Licenses (Schedule Of Royalty-Related Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Royalty Related Liabilities | ||
Royalty-related liabilities | $ 276 | $ 195 |
Accrued royalties | ||
Royalty Related Liabilities | ||
Royalty-related liabilities | 244 | 144 |
Other liabilities | ||
Royalty Related Liabilities | ||
Royalty-related liabilities | $ 32 | $ 51 |
Royalties And Licenses (Narrati
Royalties And Licenses (Narrative) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Royalties And Licenses | |
Unrecorded Unconditional Purchase Obligation | $ 1,558 |
Developer/Licensor Commitments - Royalty Bearing Only | |
Royalties And Licenses | |
Unrecorded Unconditional Purchase Obligation | $ 796 |
Balance Sheet Details (Property
Balance Sheet Details (Property And Equipment, Net Schedule) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | ||
Property and Equipment, Net [Line Items] | ||||||
Property and equipment, gross | $ 1,419 | $ 1,419 | $ 1,359 | |||
Less: accumulated depreciation | (980) | (980) | (911) | |||
Property and equipment, net | 439 | 439 | 448 | [1] | ||
Depreciation expense | 29 | $ 30 | 89 | $ 90 | ||
Computer, equipment and software | ||||||
Property and Equipment, Net [Line Items] | ||||||
Property and equipment, gross | 753 | 753 | 710 | |||
Buildings | ||||||
Property and Equipment, Net [Line Items] | ||||||
Property and equipment, gross | 348 | 348 | 343 | |||
Leasehold improvements | ||||||
Property and Equipment, Net [Line Items] | ||||||
Property and equipment, gross | 164 | 164 | 139 | |||
Equipment, furniture and fixtures, and other | ||||||
Property and Equipment, Net [Line Items] | ||||||
Property and equipment, gross | 85 | 85 | 80 | |||
Land | ||||||
Property and Equipment, Net [Line Items] | ||||||
Property and equipment, gross | 66 | 66 | 66 | |||
Construction in progress | ||||||
Property and Equipment, Net [Line Items] | ||||||
Property and equipment, gross | $ 3 | $ 3 | $ 21 | |||
[1] | Derived from audited Consolidated Financial Statements. |
Balance Sheet Details (Accrued
Balance Sheet Details (Accrued And Other Current Liabilities Schedule) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Other accrued expenses | $ 294 | $ 290 | ||
Accrued compensation and benefits | 280 | 238 | ||
Accrued royalties | 244 | 144 | ||
Contract with Customer, Liability, Current | 174 | 150 | ||
Accrued Liabilities, Fair Value Disclosure | 35 | 136 | ||
Deferred net revenue, other | 102 | 94 | ||
Operating Lease, Liability, Current | 75 | $ 50 | ||
Accrued and other current liabilities | $ 1,204 | $ 1,099 | $ 1,052 | [1] |
[1] | Derived from audited Consolidated Financial Statements. |
Balance Sheet Details (Deferred
Balance Sheet Details (Deferred Net Revenue) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | ||
Deferred Revenue Arrangement [Line Items] | |||
Deferred Revenue, Current | $ 1,073 | $ 1,100 | [1] |
Recognition of Deferred Revenue | 2,497 | ||
Deferred Revenue, Revenue Recognized | 1,169 | ||
Online enabled games [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Deferred Revenue, Current | 1,073 | 1,100 | |
Other [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Deferred Revenue, Current | 102 | 94 | |
Noncurrent [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Deferred Revenue, Noncurrent | 13 | 23 | |
Total [Member] | |||
Deferred Revenue Arrangement [Line Items] | |||
Deferred Revenue | $ 1,188 | $ 1,217 | |
[1] | Derived from audited Consolidated Financial Statements. |
Balance Sheet Details (Remainin
Balance Sheet Details (Remaining Performance Obligations) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Total deferred revenue [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 1,188 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Income Tax Footnote Disclosure [Line Items] | ||||||
Deferred Tax Assets, Net | $ 1,800 | $ 1,800 | $ 1,170 | |||
Deferred Tax Assets, Valuation Allowance | $ 200 | $ 200 | ||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 100 | |||||
Gross unrecognized tax benefits | $ 90 | |||||
Effective Income Tax Rate Reconciliation, Percent | 7.50% | (1.10%) | (139.60%) | (5.80%) | ||
Operating Loss Carryforward, Term | 7 years | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 630 | |||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 15 | $ 15 | ||||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 100 | |||||
Pro Forma [Member] | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, Percent | (15.80%) | (14.40%) | ||||
Settlement with Taxing Authority [Member] | ||||||
Income Tax Footnote Disclosure [Line Items] | ||||||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 400 | |||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 500 | $ 500 |
Financing Arrangement (Senior N
Financing Arrangement (Senior Notes) (Details) - USD ($) $ in Millions | Mar. 01, 2026 | Mar. 01, 2021 | Feb. 29, 2016 | Dec. 31, 2019 | Mar. 31, 2019 | Feb. 24, 2016 | |
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Senior Long-term Debt | $ 989 | ||||||
Senior Notes, Noncurrent | $ 995 | $ 994 | [1] | ||||
2021 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 600 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.70% | ||||||
Debt Instrument, Maturity Date | Mar. 1, 2021 | ||||||
Effective interest rate | 3.94% | ||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 1 year 2 months 12 days | ||||||
2026 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 400 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.80% | ||||||
Debt Instrument, Maturity Date | Mar. 1, 2026 | ||||||
Effective interest rate | 4.97% | ||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 6 years 2 months 12 days | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 1,000 | ||||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 1 | (1) | (2) | ||||
Debt Issuance Costs, Noncurrent, Net | 4 | (5) | $ (9) | ||||
Senior Notes, Frequency of Periodic Payment | semiannually | ||||||
Debt Instrument, Fair Value Disclosure | $ 1,062 | $ 1,039 | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||
Change of control repurchase event | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||||
[1] | Derived from audited Consolidated Financial Statements. |
Financing Arrangement (Line of
Financing Arrangement (Line of Credit Facility) (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Credit Facility, Initiation Date | Aug. 29, 2019 |
Credit Facility, Expiration Date | Aug. 29, 2024 |
Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Credit Facility, Maximum Borrowing Capacity | $ 500 |
Option To Request Additional Commitments On Credit Facility | 500 |
Debt issuance costs | $ 2 |
Line of Credit Facility Term | 5 years |
Financing Arrangement (Schedule
Financing Arrangement (Schedule Of Interest Expense Related To Notes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instruments [Abstract] | ||||
Amortization of debt issuance costs | $ 0 | $ 0 | $ (1) | $ (1) |
Coupon interest expense | (10) | (10) | (31) | (31) |
Interest Expense, Other | 0 | (1) | 0 | (1) |
Total interest expense | $ (10) | $ (11) | $ (32) | $ (33) |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | |
Lessee, Operating Lease, Remaining Lease Term | 15 years | |||
Operating Lease, Expense | $ 18 | $ 52 | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 52 | |||
Operating Lease, Right-of-Use Asset | 206 | 206 | $ 215 | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 22 | $ 22 | ||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 10 months 24 days | 4 years 10 months 24 days | ||
Operating Lease, Payments | $ 47 | |||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 49 | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | 3.40% | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | $ 74 | $ 74 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 59 | 59 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 35 | 35 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 28 | 28 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Six | 19 | 19 | ||
Lessee, Operating Lease, Liability, Payments, Due After Year Six | 26 | 26 | ||
Operating Leases, Future Minimum Payments Due | 263 | 263 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (20) | (20) | ||
Operating Lease, Liability | 243 | 243 | 247 | |
Operating Lease, Liability, Current | 75 | 75 | 50 | |
Operating Lease, Liability, Noncurrent | 168 | 168 | $ 197 | |
Prepaid Rent | 6 | |||
Deferred Rent Credit | 38 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 54 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 44 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 36 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 28 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 50 | |||
Operating Leases, Future Minimum Payments Due | $ 264 | |||
Variable Lease, Cost | 9 | 29 | ||
Short-term Lease, Cost | 2 | 11 | ||
Operating Lease, Cost | $ 29 | $ 92 | ||
Minimum | ||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 12 years | 12 years | ||
Maximum | ||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 15 years | 15 years |
Commitments And Contingencies_2
Commitments And Contingencies (Narrative) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Loss Contingencies [Line Items] | |
Unrecorded Unconditional Purchase Obligation | $ 1,558 |
Liability for Uncertainty in Income Taxes, Noncurrent | 330 |
Unrecorded Unconditional Purchase Obligation Payable in Common Stock | Maximum | |
Loss Contingencies [Line Items] | |
Unrecorded Unconditional Purchase Obligation | 20 |
Unrecorded Unconditional Purchase Obligation Payable in Common Stock Per Year | Maximum | |
Loss Contingencies [Line Items] | |
Unrecorded Unconditional Purchase Obligation | 10 |
Respawn Entertainment, LLC [Member] | |
Loss Contingencies [Line Items] | |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 35 |
Business Combination, Contingent Consideration, Liability | $ 35 |
Commitments And Contingencies_3
Commitments And Contingencies (Minimum Contractual Obligations) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Total | $ 1,558 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 58 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 441 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 407 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 189 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 170 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 126 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 167 |
Recorded Total | 1,390 |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 46 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 717 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 106 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 35 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 30 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 23 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 433 |
TotalUnconditionalPurchaseObligationBalanceSheetAmount | 2,948 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountRemainingForCurrentFiscalYear | 104 |
Total Unconditional PurchaseObligationBalanceSheetAmountOneYearAfterFiscalYearEnd | 1,158 |
Total Unconditional Purchase Obligation Balance Sheet Amount Two Years After Fiscal Year End | 513 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThreeYearsAfterFiscalYearEnd | 224 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountFourYearsAfterFiscalYearEnd | 200 |
Total Unconditional Purchase Obligation Balance Sheet Amount Five Years After Fiscal Year End | 149 |
TotalUnconditionalPurchaseObligationBalanceSheetAmountThereafter | 600 |
Developer Commitments | |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Total | 796 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 27 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 249 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 252 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 108 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 93 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 63 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 4 |
Marketing [Member] | |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Total | 315 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 16 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 101 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 88 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 42 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 40 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 28 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 0 |
Senior Notes Interest [Member] | |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Total | 145 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 7 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 41 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 20 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 20 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 19 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 19 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 19 |
Operating Lease Imputed Interest [Member] [Member] | |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Total | 20 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 2 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 6 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 4 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 3 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 3 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 1 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 1 |
Other Unrecorded Purchase Obligations [Member] | |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Total | 105 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 6 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 44 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 43 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 8 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 2 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 2 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 0 |
Senior Notes Principal And Interest [Member] | |
Long-term Purchase Commitment [Line Items] | |
Recorded Total | 1,014 |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 14 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 600 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 400 |
Operating Lease [Member] | |
Long-term Purchase Commitment [Line Items] | |
Unrecorded Total | 177 |
Unrecorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 0 |
Unrecorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 0 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Two | 0 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Three | 8 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Four | 13 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling Year Five | 13 |
Unrecorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 143 |
Recorded Total | 243 |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 20 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 68 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 55 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 32 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 25 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 18 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 25 |
Transition And Other Taxes [Member] | |
Long-term Purchase Commitment [Line Items] | |
Recorded Total | 74 |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 6 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 23 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 24 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 3 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 5 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 5 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | 8 |
License obligations [Member] | |
Long-term Purchase Commitment [Line Items] | |
Recorded Total | 59 |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | 6 |
Recorded Unconditional Purchase Obligation, Due in Next Rolling Twelve Months | 26 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Two | 27 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Three | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Four | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling Year Five | 0 |
Recorded Unconditional Purchase Obligation, Due in Rolling after Year Five | $ 0 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | May 11, 2018 | May 08, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock Repurchased and Retired During Period, Shares | 0.6 | |||||||||
Repurchase and retirement of common stock | $ 305 | $ 306 | $ 305 | $ 292 | $ 299 | $ 300 | $ 76 | |||
Market-Based Restricted Stock Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation cost related to stock options and restricted stock rights | $ 88 | $ 88 | ||||||||
Market-Based Restricted Stock Units [Member] | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 0.00% | 0.00% | ||||||||
Market-Based Restricted Stock Units [Member] | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 200.00% | 200.00% | ||||||||
Performance Based Restricted Stock Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation cost related to stock options and restricted stock rights | $ 8 | $ 8 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 68.00% | |||||||||
Performance Based Restricted Stock Units [Member] | Minimum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 0.00% | 0.00% | ||||||||
Performance Based Restricted Stock Units [Member] | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage range of shares received at vesting based on total stockholder return ("TSR") | 200.00% | 200.00% | ||||||||
Restricted Stock Rights [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation cost related to stock options and restricted stock rights | $ 610 | $ 610 | ||||||||
Weighted-average service period | 2 years | |||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation cost related to stock options and restricted stock rights | $ 514 | $ 514 | ||||||||
May 2017 Repurchase Program [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount of common stock authorized for repurchase | $ 1,200 | |||||||||
Stock Repurchased and Retired During Period, Shares | 0 | 0 | 0 | |||||||
Repurchase and retirement of common stock | $ 0 | $ 0 | $ 0 | |||||||
May 2018 Repurchase Program [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount of common stock authorized for repurchase | $ 2,400 | |||||||||
Stock Repurchased and Retired During Period, Shares | 3.1 | 3.2 | 9.6 | 7.2 | ||||||
Repurchase and retirement of common stock | $ 305 | $ 292 | $ 916 | $ 815 | ||||||
Stock-based compensation expense [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Deferred Income Tax Expense (Benefit) | $ 6 | $ 14 | $ 17 | $ 31 | ||||||
Free cash flow [Member] | Performance Based Restricted Stock Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share Based Compensation Arrangement Performance-based Milestone Percentage | 50.00% | 50.00% |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Assumptions Used In Monte-Carlo Simulation Model) (Details) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate, minimum | 1.60% | 1.60% |
Risk-free interest rate, maximum | 1.60% | 1.80% |
Expected volatility, minimum | 14.00% | 14.00% |
Expected volatility, maximum | 65.00% | 65.00% |
Weighted-average volatility | 30.00% | 29.00% |
Expected dividends | 0.00% | 0.00% |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule Of Stock Option Activity) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options, Outstanding, Beginning Balance | shares | 1,375 |
Options, Granted | shares | 4 |
Options, Exercised | shares | (196) |
Options, Forfeited, cancelled or expired | shares | 0 |
Options, Outstanding, Ending Balance | shares | 1,183 |
Options, Vested and expected to vest | shares | 1,183 |
Options, Exercisable | shares | 1,183 |
Weighted-average exercise price of options outstanding, beginning balance | $ / shares | $ 30.63 |
Weighted-average exercise price of options granted during period | $ / shares | 94.92 |
Weighted-average exercise price of options exercised during the period | $ / shares | 30.49 |
Weighted-average exercise price of options forfeited, cancelled or expired during the period | $ / shares | 0 |
Weighted-average exercise price of options outstanding, ending balance | $ / shares | 30.86 |
Weighted-average exercise price of options vested and expected to vest | $ / shares | 30.86 |
Weighted-average exercise price of options exercisable | $ / shares | $ 30.86 |
Weighted-average remaining contractual term of options outstanding | 4 years 1 month 20 days |
Weighted-average remaining contractual term of options vested and expected to vest | 4 years 1 month 20 days |
Weighted-average remaining contractual term of options exercisable | 4 years 1 month 20 days |
Aggregate intrinsic value of options outstanding | $ | $ 92 |
Aggregate intrinsic value of options vested and expected to vest | $ | 92 |
Aggregate intrinsic value of options exercisable | $ | $ 92 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule Of Restricted Stock Rights Activity, Excluding Performance-Based Activity) (Details) - Restricted Stock Rights [Member] shares in Thousands | 9 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding balance | shares | 4,960 |
Granted | shares | 4,021 |
Vested | shares | (2,279) |
Forfeited or cancelled | shares | (425) |
Outstanding balance | shares | 6,277 |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 111.03 |
Weighted-average grant date fair value, vested during period | $ / shares | 93.07 |
Weighted-average grant date fair value, vested during period | $ / shares | 108.74 |
Weighted-average grant date fair value, forfeited or cancelled during period | $ / shares | 107.29 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 100.61 |
Stock-Based Compensation (Sch_4
Stock-Based Compensation (Schedule Of Performance-Based Restricted Stock Unit Activity) (Details) - Restricted Stock Rights [Member] shares in Thousands | 9 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding balance | shares | 579 |
Granted | shares | 0 |
Forfeited or cancelled | shares | 0 |
Outstanding balance | shares | 579 |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 110.51 |
Weighted-average grant date fair value, vested during period | $ / shares | 0 |
Weighted-average grant date fair value, forfeited or cancelled during period | $ / shares | 0 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 110.51 |
Stock-Based Compensation (Sch_5
Stock-Based Compensation (Schedule Of Market-Based Restricted Stock Unit Activity) (Details) - Market-Based Restricted Stock Units [Member] shares in Thousands | 9 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Outstanding balance | shares | 958 |
Granted | shares | 1,313 |
Vested | shares | (93) |
Forfeited or cancelled | shares | (260) |
Outstanding balance | shares | 1,918 |
Weighted-average grant date fair value, beginning balance | $ / shares | $ 155.64 |
Weighted-average grant date fair values of market-based restricted stock rights granted | $ / shares | 109.04 |
Weighted-average grant date fair value, vested during period | $ / shares | 109.05 |
Weighted-average grant date fair value, forfeited or cancelled during period | $ / shares | 137.05 |
Weighted-average grant date fair value, ending balance | $ / shares | $ 128.51 |
Stock-Based Compensation (Sch_6
Stock-Based Compensation (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 91 | $ 75 | $ 256 | $ 211 |
Cost of Sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 1 | 1 | 3 | 3 |
Research And Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 60 | 49 | 170 | 135 |
Marketing and Sales [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 10 | 8 | 27 | 24 |
General And Administrative [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 20 | $ 17 | $ 56 | $ 49 |
Stock-Based Compensation Schedu
Stock-Based Compensation Schedule of Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock Repurchased and Retired During Period, Value | $ 305 | $ 306 | $ 305 | $ 292 | $ 299 | $ 300 | $ 76 | |
Stock Repurchased and Retired During Period, Shares | 0.6 | |||||||
May 2017 Repurchase Program [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock Repurchased and Retired During Period, Value | $ 0 | $ 0 | $ 0 | |||||
Stock Repurchased and Retired During Period, Shares | 0 | 0 | 0 | |||||
May 2018 Repurchase Program [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock Repurchased and Retired During Period, Value | $ 305 | $ 292 | $ 916 | $ 815 | ||||
Stock Repurchased and Retired During Period, Shares | 3.1 | 3.2 | 9.6 | 7.2 | ||||
Repurchase Program, Total | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Stock Repurchased and Retired During Period, Value | $ 305 | $ 292 | $ 916 | $ 891 | ||||
Stock Repurchased and Retired During Period, Shares | 3.1 | 3.2 | 9.6 | 7.8 |
Earnings Per Share (Computation
Earnings Per Share (Computation Of Basic Earnings And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Net income (loss) | $ 346 | $ 262 | $ 2,621 | $ 810 |
Weighted Average Number of Shares Outstanding, Basic | 292 | 302 | 294 | 304 |
Dilutive potential common shares related to stock award plans and from assumed exercise of stock options | 2 | 2 | 2 | 3 |
Weighted Average Number of Shares Outstanding, Diluted | 294 | 304 | 296 | 307 |
Earnings Per Share, Basic | $ 1.18 | $ 0.87 | $ 8.91 | $ 2.66 |
Earnings Per Share, Diluted | $ 1.18 | $ 0.86 | $ 8.85 | $ 2.64 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) shares in Millions | 9 Months Ended |
Dec. 31, 2019shares | |
Earnings Per Share Reconciliation [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings (Loss) Per Share, Amount | 2 |
Segment Information (Net Revenu
Segment Information (Net Revenue By Revenue Composition ) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item | ||||
Net revenue | $ 1,593 | $ 1,289 | $ 4,150 | $ 3,712 |
Total Digital, net revenue [Member] | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Net revenue | 1,124 | 908 | 3,095 | 2,645 |
Full game downloads, net revenue [Member] | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Net revenue | 286 | 247 | 598 | 511 |
Live services, net revenue [Member] | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Net revenue | 677 | 480 | 1,981 | 1,502 |
Mobile, net revenue [Member] | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Net revenue | 161 | 181 | 516 | 632 |
Total Packaged goods and other, net revenue [Member] | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Net revenue | $ 469 | $ 381 | $ 1,055 | $ 1,067 |
Segment Information (Net Reve_2
Segment Information (Net Revenue By Platform) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Revenue by Platform [Line Items] | ||||
Net revenue | $ 1,593 | $ 1,289 | $ 4,150 | $ 3,712 |
Console | ||||
Net Revenue by Platform [Line Items] | ||||
Net revenue | 1,163 | 885 | 2,846 | 2,507 |
PC / Browser | ||||
Net Revenue by Platform [Line Items] | ||||
Net revenue | 257 | 217 | 748 | 563 |
Mobile | ||||
Net Revenue by Platform [Line Items] | ||||
Net revenue | 169 | 181 | 542 | 634 |
Other | ||||
Net Revenue by Platform [Line Items] | ||||
Net revenue | $ 4 | $ 6 | $ 14 | $ 8 |
Segment Information (Net Reve_3
Segment Information (Net Revenue By Geographic Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from External Customer [Line Items] | ||||
Net revenue | $ 1,593 | $ 1,289 | $ 4,150 | $ 3,712 |
North America | ||||
Revenue from External Customer [Line Items] | ||||
Net revenue | 690 | 519 | 1,711 | 1,436 |
International | ||||
Revenue from External Customer [Line Items] | ||||
Net revenue | $ 903 | $ 770 | $ 2,439 | $ 2,276 |